In an effort to enhance transaction accuracy and compliance within the financial sector, significant changes are underway regarding the sharing of personal information. These adjustments aim to streamline processes, reduce errors, and ensure alignment with regulatory requirements.
Rather than disclosing names based on ITD/PAN Card details, a new system is being implemented whereby reverse feeds will only confirm with a simple ‘Yes’ or ‘No’. This shift eliminates the need for RTAs to construct complex name-matching algorithms on end, significantly reducing the risk of transaction rejections due to discrepancies in investor names or dates of birth (DOB).
This development prompts a call to action for all Distributors, Channel Partners, Exchanges, and MFU to adopt the following adjustments in their transaction reporting procedures, effective from April 1, 2024:
- Distributors are tasked with ensuring that investor names provided for fresh folio creation match the details available in investor PAN/ITD records. It is imperative that the information provided in the form or feed file is in alignment with income tax records.
- Intermediaries are mandated to furnish the Date of Birth/Incorporation (DOI) of investors (Individuals) for Non-Individuals. This information must correspond accurately with the details on the PAN card.
- For minor investors, the inclusion of Guardian Name and DOB is now mandatory for all transactions.
- In instances where the Investor Name or DOB/DOI differs from ITD records, rectification in ITD should precede the submission of the application/transaction to ensure seamless processing.
- Transactions failing any of the above validations will be subject to rejection during processing, highlighting the importance of accurate data submission.
- Existing investors whose Name or DOB in the folio does not match with PAN/ITD are urged to update their details either in the MF records or ITD before initiating additional purchases or redemptions to avoid transaction disruptions.
