This article is relevant to investors who completed their Know Your Client (KYC) process using documents other than Aadhaar, such as utility bills, bank statements, or driving licenses. It refers to SEBI circulars issued on August 11, 2023 and October 12, 2023, which mandated KYC Registration Agencies (KRAs) to validate PAN details, including email addresses and mobile numbers (if provided).
Here’s what you need to know:
- Original deadline: KRAs were initially supposed to complete the validation process by December 31, 2023.
- Extension granted: SEBI has extended the deadline for KRA validation to March 31, 2024.
- Impact of failed validation: If email address and/or mobile number verification fails, the PAN’s KYC status will become invalid after April 1, 2024.
- Consequences of invalid KYC: All mutual fund transactions (financial and non-financial) will be blocked for investors with invalid KYC PANs starting April 1, 2024.
What to do:
- Investors who completed their KYC using non-Aadhaar documents are advised to check their KYC status with their KRA or respective investment intermediaries.
- If your KYC status is marked as “Hold” or “Invalid,” contact your KRA or investment intermediary to resolve the issue and update your contact information before the deadline. Additionally:
- As per the latest regulatory guidelines, investors with failed validation might be required to do a re-KYC for these PANs using one of the valid proofs, such as Aadhaar, Voter ID, MNREGA Card etc., with the respective KRA.
Remember: Timely action is crucial to avoid any disruption in your mutual fund transactions.
