How to file a mutual fund complaint with SEBI?

Often many investors ask how to file a mutual fund complaint with SEBI after their numerous attempts to resolve their mutual fund related queries. OnlineMF tries to explain to the entire process of filing a online mutual fund complaint form with the mutual fund regulator SEBI.

USE THIS AS THE LAST MEANS OF PROBLEM SOLUTION

All investors should knock on the doors of the regular SEBI only after all the other means of finding a resolution for investor complains are not met. Mutual Fund Complaints should be addressed with the respective Mutual fund companies before you adopt this route.

SEBI INVESTOR COMPLAINT WEBSITE http://scores.gov.in/default.aspx

SEBI SCORES (SEBI Complaints Redress System)

 
ONLINE MODE

1] Log on to SEBI SCORES (SEBI Complaints Redress System)

http://scores.gov.in/default.aspx

2] Select Complaint Registration under Investor Corner

Update all the below information like

  • Name of Investor  :  
  • Complaint Lodged by  :  
  • Address of Correspondence of  Investor  :    
  • City/Location  :  
  • Pin Code  :  
  • State/UT :
  • PAN of Investor  :  
  • Phone Number  :  
  • Mobile Number (For receiving SMS)
  • E-mail Address of Investor 

Ensure the highlighted information are accurately filled up in your mutual fund complain to SEBI.

 3] Select Appropriate Category

  • Listed Companies/ Registrars & Transfer Agents
  • Brokers/Stock Exchanges
  • Depository Participants/Depository
  • Mutual Funds
  • Other Entities
  • Information to SEBI

Click on Mutual Fund Category to register investor complaint

4] Complete the Online Complaint form

Selected Category :   Mutual Funds 

*Complaint Against  : 

*Nature of Complaint Related to  :  MutualFunds 

 Select the appropriate nature of your complaint for any of the below options:

  •  Delay/Non-receipt of dividend on Units 
  •  Delay/Non-receipt of Interest on delayed payment of Dividend
  •  Delay/Non-receipt of Redemption Proceeds 
  •  Delay/Non-receipt of Interest on delayed payment of Redemption
  •  Non-receipt of Statement of Account/Unit Certificate 
  •  Discrepancy in Statement of Account 
  •  Non receipt of Annual Report/ Abridged Summary
  •  Wrong Switch between Schemes
  •  Unauthorised Switch between schemes
  •  Deviation from scheme attributes
  •  Wrong or excess charges/load
  •  Non updation of changes viz.address, PAN, bank details, nomination, etc
  •  Non receipt of Annual Account
  •  Others 

5] Select the mode of your Mutual Fund holdings

  •  Physical Mode
  •  Demat Mode

6] Complete the image verification

Verify and complete the image verification by tying in the numbers/alphabets provided in the image into the comments box in the same format.

7] Click on Submit Button

Once you complete the online mutual fund complaint you would be provided with a registration number. Do remember to store carefully this complaint registration number for future reference.

An email is generated instantaneously acknowledging the receipt of the complaint and allotting a unique complaint registration number for future reference and tracking.

PHYSICAL /OFFLINE MUTUAL FUND COMPLAINT

If you are facing issues registering your online mutual fund complaint form OR you do not have access to Computer or Internet Connection you can register your complain by calling on the phone number of SEBI at 022-26449188/26449199. Investors can also send the complaint physically by post to any of the Offices of SEBI.

 USEFUL MUTUAL FUND RELATED INFORMATION

SEBI TOLL-FREE PHONE NUMBER

SEBI helpline Number: Use the SEBI Mutual Fund helpline number 1800-22-7575 and 1800-266-7575 for your investor related questions.

SEBI INVESTOR’S WEBSITE

Before you register mutual fund complaints to SEBI check the investor website for more details. SEBI INVESTOR’S WEBSITE http://investor.sebi.gov.in

Back to Basics Series II : This article is in response to SEBI’s Public Appeal for following the right approach to Mutual Fund Industry.

SEBI Investor Education
©OnlineMF

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Rajiv Gandhi Equity Savings Scheme (RESS) : Should you invest in this equity scheme?

Rajiv Gandhi Equity Savings Scheme (RESS) : Should you invest in this equity scheme?

SEBI Chairman UK Sinha certainly does not think so if you are a first time investor into stock markets. On a recent opinion provided by the SEBI to government UK SINHA former Chairman of UTI Assset Management Company indicated his reservations about first time retail investors investing in Rajiv Gandhi Equity Savings Scheme (RESS).

Introduction of RESS(Rajiv Gandhi Equity Scheme)

RAJIV GANDHI EQUITY SAVINGS SCHEME

Finance Minister in his Budget had recommended introduction of Rajiv Gandhi Equity Savings Scheme for investors. The rational was the extremely low penetration of retail investors in the Indian Equity Markets. This scheme is conceived to encourage participation by new retail investors in Indian Stocks.

Why the Government is keen on Retail Participation in Indian Equity Markets?

While average Indian buying into equity markets is increasing by each passing day. However, it still cannot compare to the interests and levels of buying/consumption made by Indians in Gold and other savings instruments. The quantum of investments in Bank Fixed deposits and Gold is multiple times more than the investments in equity markets. Banks are still considered to be safe and sound investment option compared to stocks. Government is keen on changing this investment pattern and move towards enhanced in stock markets. While any economy prefers to have a balanced portflio of spread across various assest classes. The ratio of investments by Indians is skewed towards the Deposits and Gold. Such high is the proportion of these investments that is has become the cause of worry for the government.

Buying Gold means Losing Foreign Currency

India is not a producer of Gold. So all the gold has to be imported, causing huge loss of precious foreign currency. The more gold we buy, the more needs to be imported, causing more drain on the precious little foreign currency (mostly it is US Dollar) India holds. Most of it gets exhausted in buying Gold.

How does the Government encourage you invest in equity markets?

Government is introducing RESS providing Tax Deductions to retails investors participating in the Indian Equity Markets. This deduction would be available under probably section 80C to salaried retail investors. This is an incentive being provided by the government to motivate new investors who trationally invested in bank deposits and gold by granting them tax deduction to the taxable income for that financial year.

Should you invest in this scheme?

Well, that is the million dollar questioon. Though, the purpose of investing in this scheme is to provide a stepping stone into the Indian Equity markets for new investors by the government. SEBI Chairman does not think that the new investors would be exposing themselves to the right platform to begin their journey into the financial markets. I guess the SEBI Chairman who knows markets, marketmen and governments would know, what he is saying.

What are features and benefits of Mutual Funds?

Unlike most other financial products like provident fund, insurance and post office schemes, Top Mutual Funds not only provides convenience while investing money, but it also offers a variety of features that benefit investors. A few of most common features and benefits of  top mutual funds are highlighted.

Micro SIP/Chota SIP
Feature of Mutual Fund
Invest as low as Rs 100/- in Mutual Fund Companies

Top Mutual Fund Companies offer its investors an option to invest extremely small amounts such as Rs 100/-, Rs 500/-, Rs 1000/- each month depending on individual’s capacity into many of its mutual fund schemes.

Benefits of Mutual Fund: Benefits of Mutual Fund are for people who want to invest small amounts. Daily Wage Workers, Rickshaw Taxi Drivers, Labourers who wish to invest into Mutual Funds.

Flexibility of Dates
Features of Mutual Fund

Ease of investing on convenient dates

Investor can invest in top Mutual Fund Scheme on their choice of dates. Many large Mutual Fund companies offer multiple dates for investing into its top performing mutual fund schemes. E.g Few dates would be 1st, 5th, 10th, 15th, 25th of each month. This makes regular investments on salary dates possible.

Benefit of Mutual Funds:  Benefits Salaried people who receive money at the end of the month and wish to invest in Mutual Funds.

Timely Payments through ECS
Feature of Mutual Funds

Hassle free, Regular Payments to allow you to concentrate on other important things in life

Investors in Mutual Funds need not worry about making timely payments each month through opting for ECS Payment Method. This ensures regular, hassle free, timely and correct monthly payments.

Benefit of Mutual Fund:  Feature is useful for people who are busy or travel a lot, as he does not have time to keep track of his monthly payments.

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Investing Through POA (Power of Attorney)
Feature of MutualFund

Investing without physical presence

Investments in Mutual Funds can be done through Assignment of a Power of Attorney for effective financial planning. Army Personnel, Officers posted on-duty at far off places, owners/directors of limited companies, Non-Resident Indians, Resident Indian posted onsite/outside India can invest through the convenience of POA.

Benefit of Mutual Fund: Your Financial Planning for family’s benefit cannot be discontinued in your absence. Defense and Police Officers can appoint wife or family members to be POA and allow them to invest on your behalf.

Continue reading

SEBI ACTS FINALLY, in interest of Retail Investor.

BUT IS IT TOO LITTLE TOO LATE?

SEBI is now mulling the idea for separating the corporate investor from retail investors in every scheme of mutual funds, so that latter does not suffer at the expense for former. Even, if it suffers it will now come at a cost.

Retail investors until now always had to pay a higher entry load compared to Corporate Investors. The exit loads were also biased to favor the Corporate Investor more than retail investor. It was easier for a Corporate investor to enter and exit a Mutual Fund scheme at minimal transaction costs. However, that lack of barriers came at the expense of retail investors.

Many companies park their Working Capital and short term funds in various mutual fund schemes to seek higher returns for otherwise idle money.

Corporate Investors

Corporate Investors until now had it easy while investing in Mutual Funds of major fund houses. They were offered parking of their idle funds at huge concessional rates compared to retail investor.

Corporates could invest and withdraw funds with ease providing them the ample liquidity, which they relished upon.

Corporate Investors were also provided extra benefits in terms of ease of withdrawal with negligible or zero penalty for early withdrawal of funds.

With the advent for ECS, RTGS and various quick settlement facilities the turnaround time required to process the withdrawals of Corporate funds also reduced considerably. It only made Corporate Investor pour in more money to their existing investments.

RTGS provided ample opportunity to them to receive redemption funds within shortest possible time.

So what was initially an investment vehicle for idle funds could have also evolved into an easy mechanism for producing higher returns with minimal transaction costs.

Retail Investors

It was easier for a Corporate investor to enter and exit a Mutual Fund scheme at minimal transaction costs. However, that lack of barriers came at the expense of retail investors.

They were charged huge sums for early withdrawals compared to corporate Investor. When a Corporate investor exits a scheme (redemption), then the securities held by the fund have to be sold to pay the Corporate Investor in Cash. This results in erosion of NAV. It also results in selling costs which are bourne by the remaining customers (existing unit holders).

Since the barriers (costs as well as time required to encash) to exit a scheme are so less that Corporate find it simple route to make quick buck and exit.

All through this downturn in assets of all major fund houses, retail investor has shown his faith in the abilities of money managers. They have not panicked and not followed a herd mentality unlike Corporates. A Major portion of 47,000 Crs of outflows in October’s AUM has been in Fixed Maturity Plans which are favorites of the Corporate Investors.

Very few retail investors might have redeemed their portfolios in such harsh conditions.

In fact they might have stopped believing in the advices and tips of their favorite Grocery Shop guy who sells less Grocery than stock tips.

In fact during such times retail investors turn to proven records of top Money Managers and trust their instincts more than Grocery Shop advisor with stock TIPS.

Fund Houses (Asset Management Companies)

Even for fund houses it was easy money at cheap rates and in huge amounts. It was a win-win situation for both Corporates and Fund houses. The lone suffer in this party was the gullible and naive retail investor.

It is easy for Fund houses to collect Rs 100 from Single Corporate Investor than to collect Rs 5 from 20 retail investor located at different locations.

The Corporate Investor fulfilled the insatiable desire of marketing and money managers to pump up their AUM. So long the party lasted everybody was cheering. Now the same corporate investor has exited various schemes which were designed for making their life easier and returns higher. The money managers could not keep pace with double whammy of erosion of NAV along with outflows of same easy money.

Many fund houses struggled to keep pace with redemptions. Some had to knock on the doors for the regulators.

Last thing you would wish to do as a fund house.

SEBI

SEBI had all the key records, data with it all along.

This practice was on since many years. Just that the regulator has now chosen to act upon it now, is not surprising.

SEBI at times acts much like the cops in movies which arrive on the scene after the crime has been committed.

SEBI on its part needs to be more proactive and have a firm grip on the nerve of industry. It may also be the case that it does not have the necessary manpower and required expertise to cater to the huge surge in the Indian Mutual Fund Industry.

The regulator woke up after close to 47,000 Crs (See October AUM figures) of erosion and withdraws of funds from the Industry.

However, to be fair to the regulator many people do not like regulatory interference during uptrend in the markets. It’s only during downtrends that regulators are respected and existing regulations are adhered to.

If regulators intervene during uptrend in the markets they are viewed as unnecessary interference and supervision.

SEBI has decided to implement either

Option 1:

Same entry fee for both Corporate and Retail Investor OR

Option 2:

Create separate investor classes and manage both separately within main fund so that both the parties are firewalled.

Onlinemutualfund (OMF) recommends the Option 2 and hopes SEBI and adopts it.

Second option, is to be more reasonable and sound, as it keeps all the players happy.

Hope right decisions are made and retail investors are again a happy lot.

Tell us about your opinion, views, and comments, remember it counts.

CVL CONTACT DETAILS

Investors who wish to seek general information on Know Your Client (KYC) Compliance, may mail their queries/suggestions to: cvlhelpdesk@cdslindia.com
Western Region

Mumbai
Phiroze Jeejeebhoy Towers,
17th Floor, Dalal Street
Mumbai – 400 001
Phone :91-22-2721383, 91-22-32485170 (Direct lines),
Board : 91-22-22723333 Extn. 5861, 5862, 8686
Email : cvlhelpdesk@cdslindia.com

KYC for Mutual Funds.

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Know-your-client (KYC) process – Query bank.

Updated on: December 20, 2007

Sr No Issue Response

1. After obtaining a KYC acknowledgment, will the KYC compliance be updated in the folios automatically? Will CVL inform the mutual funds for updation of KYC in the investor folios?

KYC Compliance will not get automatically updated in the folios in mutual

fund. The investors have to separately inform the fund/RTA about their KYC Registration along with KYC acknowledgements. Your KYC compliance status will be updated across all folios where your PAN number is registered and for any other folios you request.

2. How can an investor update his KYC compliance status in his folios?

Investors can update their KYC compliance status in their folios by:

a. Making a written request to update their KYC process to each fund

house attaching a copy of their acknowledgements.

b. enclosing KYC acknowledgement with additional purchase

KYC compliance status will be updated across all folios where your PAN

number is registered and for any other folios you request

Please be advised that all holders in a folio must be KYC compliant in

order to be able to invest Rs 50,000 or more in that folio.

3. Can investor provide KYC compliance

details with redemptions and switch

transactions

Investors are requested not to provide KYC compliance details with

redemption or switch transaction, as it is possible the same may not be

updated in the folio.

Investors are requested to make a written request as noted in question 2

above

4. In case of schemes investing in other MF

schemes (like ULIPs etc), who is to

complete the KYC process

Mutual Fund to complete KYC.

5. Clarification in a similar scenario for

Insurance companies which invest under

various scheme names

Insurance Company to complete KYC.

6. Clarification in case of Venture Funds which

invest under various scheme names.

Main Venture Fund to complete KYC.

7. FII clarification to Custodians. Proof of ID: SEBI registration for FII and letter of approval for the sub

account.

Proof of address: POA between Sub account/ FII and Sub custodian.

Sub Custodian Registration number.

List of authorised signatories duly attested.

The sub custodian can sign the KYC application form.

In addition, the Gross Income details requested for will be the Gross Net

Assets in India as of the last month end.

8. Address proof in respect of Army personnel,

who provide ’56 APO’ etc. as address for

correspondence

For Individuals with an Army Address (’56 APO’), Letter from Commanding

Officer / Photo copy of Army Id card duly attested can be accepted as proof of address.

9. What are the constitution documents required

in case of unregistered Partnerships, Trusts,

etc.

Alternate documents in case the Partnership is not registered.

In case of unregistered Partnership firm, following two documents to be

taken:

1. The Managing Partners’/Trustees’ name to be mentioned under

contact name in the MAF. Any officially valid document viz.

Passport copy, Driving license, PAN card, etc. of the person whose

name is stated under contact name to be obtained.

2. Copy of the bank statement which will have the name and the

address of the Partnership firm/Trust.

Both the above documents to be verified with the original or produced as

attested true copy.

10. Spouse/Child/Dependent of an NRI/PIO with

“NRI/PIO” who does not have a proof of

address

Can produce the proof of address of the sponsoring husband with

documents supporting the relationship such as marriage certificate/Visa,

etc

We have now extended this to all, not just NRI / PIO

In case you desire to register an address in India for communication you

must provide proof of address in your own name or that of an immediate

relative with an additional document evidencing the direct relationship with

such person i.e. Parent/Spouse/Child.

11. Attestation of corporate documents

Corporate documents can be self attested by Director/Company

Secretary. All other entities’ documents to be attested by a Notary, etc.

12. Identity document in case of an NRI should

necessarily be a Passport or does he have a

choice of giving any of the other docs

suggested Proof of Address – are

international DL, Electricity bill, Bank statement etc acceptable in case of

NRI/PIOs?

Passport copy and PAN are mandatory.

For attestation: The documents can be attested by a Consular Officer or

an authorized official of overseas branches of scheduled commercials

banks registered in India. Apart from this, if any of the documents

(including attestations / certifications) towards proof of identity or address

are in a foreign language, please have them translated into English and

submit them.

13. Can any document issued by the local

authorities (eg: foreign bank, utility bills,

international driving license) be acceptable as

address proof for NRIs?

Yes

14. Address proof for both Indian and overseas

address to be provided by an NRI – Do both of

them need to be in the NRI/PIOs name. (In

some cases the Indian address proof will

generally be in the relatives name as NRI

does not stay at the address).

Local address not mandatory. If given, the name has to match, or must be

of a relative as per qs 10 wth proof of relationship?.

15. In case of Merchant Navy NRIs, the overseas

address proof is not available. What is the

alternative documentation that can be taken?

Mariners’ declaration or Certified Copy of CDC (Continuous Discharge

Certificate) is to be produced.

16. Also what is the acceptable

notarization/attestation for the NRI/PIOs e.g.:

an embassy or a bank abroad.

For attestation: The documents can be attested by a Consular Officer or

an authorized official of overseas branches of scheduled commercials

banks registered in India. Apart from this, if any of the documents

(including attestations / certifications) towards proof of identity or address

are in a foreign language, please have them translated into English and

submit them

17. Additionally, which pages on MOA and AOA

need to be attested? is each page to be

attested? same for partnership deed etc.-

The page giving details of the registration of the entity has to be attested.

In case of Partnership deed, the first page (which will bear the stamp and

the registration details) and the last page (which will have the signatures)

have to be attested.

18. Document evidencing authority to invest” in

partnership firm – will a letter signed by all

partners authorizing one or more partners to

invest on the firm’s behalf do?

Yes

19. What about proprietorship firm documents? Individual.

Which application form to be filled hereindividual

or non-individual

20. Is there a standard format for deed of

declaration for HUF or any format stating HUF

members and co-parcenors will suffice

Alternate documents to be obtained for HUF in case of non availability of

deed of declaration:

HUF Pan Card

Karta’s name to be written under the contact name in the non-individual

MAF.

Any officially valid document of the Karta whose name is mentioned in the

MAF under contact name.

Bank Pass book with the name and address of the HUF.

21. All docs for non-individuals need to be on a

letterhead or a letter format with

firm/company stamp suffice

Any one

22. PAN is mandatory for all investors. What

does one do for a person where PAN is not

available?

Cannot complete KYC or invest in Mutual Funds. If the PAN number is

available and the PAN card is lost, investor to attach a copy of the

acknowledgement for request of duplicate PAN card.

23. If client does not possess the KYC

acknowledgement, can a query be done

online for enquiries and a screen print of the

same be attached for investment?

Please call the CVL Helpdesk at : 022 3246 2767/2559, 022 272

1261/2008 for assistance

24. Will CVL intimate client independently of the

KYC Compliance status – e.g. via a separate

letter?

No. In the event of any KYC Application Form being found deficient for

lack of information / insufficiency of mandatory documentation, CVL will

write to the investor stating that the KYC process is incomplete for want of

information/document.

25. Is a proof of entity required for a sole

proprietorships

Which application to be used for

proprietorship firm – Individual or non

individual? Can a Proprietor use his own

individual KYC for his firm’s investment like

PAN?

No. In case of sole proprietors, sole proprietor must be KYC compliant in

his individual name & capacity.

Proprietorship firm is under the Individual Category and the applicant has

to give his/her own PAN. Investment application may be in the name of

the firm – the details on how to apply would have to be obtained from

AMC. But the PAN of the sole proprietor in the capacity of an Individual

would have to be used for such investment

26. Will something like a attested college identity

card suffice

NO

27. Is a Proof of Address required for non

individuals

For HUF, Bank pass book copy will be the address proof. For others,

Constitution document will suffice

28. Can the same document double up as ID and

address proof e.g. driving license?

Not relevant now as PAN can be the only proof of identity. However, for

non-photo PAN Card, investors could give an alternative photo identity like

a Passport, Driving license, Voters’ identity card.

29. KYC application with Thumb Impressions

POS would accept applications carrying thumb impression in lieu of

signature provided the signature is attested by a Notary or a Gazetted

officer.

30. Application under discretionary Portfolio

Management Services which operates

through Pool account. Should the entity

complete KYC as POA?

No. Entity is investing in its legal capacity and should be KYC compliant

and quote PAN as an investor. For an AMC running PMS business, they

will quote the entity’s PAN for their own investment and investment done

for PMS clients thru Pool account.

31. Will Channel Distributors need to quote their

PANs as POA.

No. We need to record offline that KYC of channel partners done through

agreements, etc.

32. What would be the address proof for

residents of countries like UAE where the

addresses are P.O. Box addresses or C/O

addresses? Are these accepted in the first

PO box address is acceptable provided the proof is given in the form of

bank statements, etc.

place? In UAE, the PO Box is a genuine issue.

33. Can US residents apply for KYC completion? US based NRIs/PIOs can apply, but investments into funds will be subject

to fund houses’ internal guidelines.

34. In case the client provides the PAN no., but

doesn’t have a PAN card, can the allotment

letter of PAN be accepted in place of the

photocopy of the PAN?

Only copy of PAN card will be accepted as proof of identity. In case the

PAN card is lost or misplaced, investor to produce a copy of the

acknowledgement of the request to IT department for issuance of a

duplicate PAN card.

35. As per the operating guidelines, the present

address in the KYC Application Form would

be the correspondence address. The

guidelines clearly state that the permanent

address for NRI/POI has to be the overseas

address. However, for PIO it is explicitly

stated that the present address has to be the

overseas address.

Does that mean that for PIOs, no

communication can be made to the local

address, even if it is supported with a valid

Address proof ?

While the space for providing overseas address is the same as permanent

address, it does not mean that the applicant cannot give an overseas in

the space provided for Correspondence address.

For registering a local communication address, the NRI/PIO has to give a

proof of address of self or a immediate relative with an additional

document evidencing the direct relationship i.e Parent/Spouse/Child.

May need to be modified now that we are treating PIO / NRI on par?

37. Can an OCI (Overseas Citizen of India) card

be taken instead of PIO?

Yes. Either an OCI card or a PIO card will be required.

Can be deleted?

38. In case of Partnership firm, Trusts Any

officially valid document in respect of holding

a power of attorney to transact (ASL and

resolution / authority to invest) is mandatory.

Please confirm who all need to sign on the

document. Do all partners need to sign?

A letter listing the authorized people to transact signed by all

partners/trustees would suffice.

39. Would a bank certificate (with a photo of the Yes

investor) be a valid identity proof?

40. Board resolution that is required is the

resolution to invest or a specific resolution

to apply for a KYC

Resolution to invest

41. Investors who are required to travel

frequently and stay away in foreign countries

by nature of their profession and therefore

becoming NRI but they do not have any

permanent address for their stay abroad as

they normally stay in hotel. However, they

have residential address in India. Clarification

is therefore requested as to which documents

they should attach as a evidence of address,

particularly in case of Cricketers who are

traveling abroad.

An NRI client is staying in an accommodation

provided by the company he is working for

and so he has no overseas address proof in

his name which can be provided along with

the KYC. Can you please confirm what can be

done in this scenario?

Our earlier FAQ has this answer: Investor’s who travel frequently by

nature of their profession and stay away in foreign countries in company’s

accommodation or hotels (who become NRI and do not have a permanent

address) but have a residential address in India, may provide such Indian

address with proof. In addition, please also provide a letter of confirmation

from your employer / business on company letterhead as an additional

proof of address.

42.

In case of investments through POA or

through channel distributors, there is a

requirement that all communications should

go to the address of the POA or the channel

distributor. If the address of the POA/Channel

Distributor has to be given in the KYC form,

what is the proof to be submitted.

This is not relevant as Mutual Funds are now required to obtain and verify

the address of their investors. MFs are writing to such distributors to

provide the address of the investors.

43. Whether a rent agreement can be accepted as

an overseas address proof

Yes

44. Documents accepted as address proof in

regional languages need to be translated.

Yes. Ration card accepted as valid proof. We expect the local POS to do

the translation of documents and state the same along side the “verified”

Does the translation need to be attested? If

yes, Who all can attest the translated

document? eg: Ration card accepted as

address proof

stamp. In case of foreign languages, these need to be translated into

English.

45. Can a power of attorney sign the KYC

applications (individual), also what are the

requirements in terms of documentation

(client & POA)?

POA submitting application on behalf of

investor and submitting POI & POA of self.

No. KYC Application form must be separately applied by the investor and

his POA. POA’s PAN / KYC acknowledgement also to be quoted on the

Mutual Fund transaction form, if applied through a POA.

46. Is there a particular stamp format, for

attestation?

Name, Designation, Bank branch, Employee no. State “Verified with

Original”

47. Do originals require attestation? if yes, is self

attestation also required on those ?

All documents must be submitted in original along with a self-attested

copy. The original will be returned across the counter after verification.

Alternatively, investors may submit notarized copies of the requisite

documents. On submission of the KYC form and documents to CVL,

investors will receive an acknowledgement across the counter, a copy of

which must be submitted to us as proof of having completed the

formalities related to PAN verification and KYC

48. Is the address proof (where the address is in

the name of an immediate relative) along with

the relationship proof valid for all NRI

customers or only UAE residents? –

This is valid for all clients, resident and non-resident

49. Is this address proof along with relationship

proof applicable for local addresses as well.

For e.g. For a recently married woman, who

does not have a Bank A/c ( not even in her

maiden name ) , relocated to a different

location, not having a Voter ID Card with

updated address , not having a driving

license what is the way out to complete the

KYC process? Her every document is in her

husband’s name and can provide a Marriage

Certificate for your information

Yes. A Woman, as in this example, should give marriage certificate as the

proof of relation along with the address proof of her husband.

50. Alternate PIO proof / OCI card (if PIO card /

OCI card is not available).

Proof of Indian Origin:

􀂃 Copy of foreign passport with place of birth as India OR

􀂃 Indian passport copy of Self / Parents/ Grandparents(with proof of

relationship) OR

Documents issued by a Government authority specifying place of birth as

India.

Can be deleted since we are treating NRI / PIO / OCI all as Non

Residents?

51. US citizen who holds an Overseas Citizen of

India card but does not have US or overseas

address and cannot furnish any proof. Apart

from this he has stated Nationality as US and

status as Resident Indian and PIO. At present

he has furnished following as proof of

identity and Proof of address.

1) Pan card copy 2) Photocopy of

Telephone bill

Should we show him as an Indian Citizen i.e.

Nationality and status as Resident Individual

only as he has being investing from local

savings bank+Pan Card copy +has provided

us with local address proof. OR

Should we take him as USA citizen with PIO

or Overseas Citizen Indian attested copy with

only correspondence address i.e. only

section B1.

He should be categorized as a Foreign Citizen and Resident Indian.

Therefore, he has to submit his proof of ID (PAN card) and a proof for

local correspondence address. His passport copy, citizenship card / social

security card will have his foreign address which can be captured as a

permanent address.

(Not sure when and how this scenario would arise..)

52. In case of investment from executor to the

estate of a person whose settlement is

pending in Court, please confirm whether the

executor has to fill a individual or nonindividual

form.

Individual Form

(Should this not depend on who the executor is…?)

53. Is there a requirement for the custodian to

complete KYC formalities. Can the custodian

sign the KYC application form on behalf of

FII/sub-account (without completing KYC) for

itself as a custodian)

Custodian can sign on behalf of the FII and sub accounts. No need to

complete KYC for the custodian for this purpose.

I would propose that the FII should also complete KYC as even authorized

signatories need to be KYC compliant…

54. For a PIO or NRI, foreign address is

mandatory. However, Indian Address is not

mandatory. I.e. both the correspondence and

permanent address can be overseas – they

may be same or different.

Yes.

55. in some cases the bank managers refuse to

give employee code (SBI Versova), such

attestations were also rejected

In case of Banker attestation with round seal

and with out name seal and emp.code no.

No need for the bank manager to put his employee code. Stamp of the

bank, Name, Designation and signature is mandatory.

(Wouldn’t it be better to change the operating instructions and point 46

rather than having this as an exception?)

56. If a person is submitting both PAN card and

Passport and ticking both in the photo

identity proof column it is being rejected

since 2 places have been ticked.

As long as the POI is from the admissible list, the POS should accept the

form. In cases where the Applicant has ticked multiple items, the POS

should be instructed to enter any one from these and scan the relevant

document.

Should be deleted since PAN is the only acceptable POI?

57. Attestations by SEO, Police Inspector,

Cosmos Bank (Scheduled) Manager were

rejected. –

Attestation only by a Notary/Judicial Authority or a Bank Manager of a

Scheduled Commercial Bank (excluding Gramin and Cooperative banks)

acceptable.

58. In POI names are like Prasantbhai Rajeev

Thakkar and in the application it is mentioned

Prasant Rajeev Thakkar – Have asked to

accept this variation in name

Minor variations acceptable, provided some other information like the

name ( should this not be DOB / PAN or something else) or the signature

matches.

59. PANCARD taken on minor name which is

having guardian signature and submitted for

POI and the investor is major as per the KYC

application.

Not acceptable.

60. Permanent address if blank in case of

Individual. ?

Accept and leave the Permanent Address blank. It would also mean that

NRIs may only give their overseas address.

61. If the applicant submits PoI and PoA with the

attestation of any Gazetted officer/ Notary,

can we accept without self attestation ?

Attested copy is to be given in original and hence, it is similar to the

original document. It does not need self-attestation by the applicant

62. For non individuals – what are the documents

to be submitted as address proof? Can we

accept the application without POA?

For non-individual applicant, mandatory documents for each category are

specified. Hence, no additional POA is required for non-individual

applicant except in the case of HUF not having a Deed of declaration???

63. Which application to be used for

proprietorship firm – Individual or non

individual ? Can a Proprietor use his own

individual KYC for his firm’s investment like

PAN ?

Proprietorship firm is under the Individual Category and the applicant has

to give his/her own PAN. Investment application may be in the name of

the firm – the details on how to apply would have to be obtained from

AMC. But the KYC done in the capacity of Individual would have to be

used for such investment

64. POS have reported cases where applicant

brings original Demat A/C statement or Bank

statement as POA (and leaves the same with

the POS for storing by CVL). There are two

categories in these.

1. The statement is stamped and signed

by the issuer. – In such cases, the POS should

accept the same as valid POA since the

authenticity is established by the stamp &

signature. – However there are no means of

checking the authenticity of the stamp &

signature.

2. In second case, the documents do not

bear any signature or stamp from issuer. In

some cases it has a remark like “This is a

computer generated statement and does not

need signature”. Can the POS accept such

documents as POA and take them on record?

I am personally not comfortable with this

since in principle, anyone with access to a

computer can print such a statement.

If the statements are on the letterhead of the Bank/DP, the same can be

accepted. Even a copy of the same can be accepted after verifying with

the original.

If not on entity letterhead, the same needs to have the seal of the bank

and signature.

Cannot accept statements printed on plain stationery without the bank

seal and signature.

(appears to be a repeat)

65 What is Money Laundering?

Money laundering broadly means the conversion or “Laundering” of

money that is illegally obtained, so as to make it appear to originate from a

legitimate source.

It was originally used in the context of terrorist, criminal, smuggling and

drug-dealing activities. In a wider context, tax-evaded money is also

covered.

66 What is the Prevention of Money Laundering

Act (PMLA)?

As part of a global initiative, a Financial Action Task Force (“FATF”) was

created to help member countries draw up Anti-Money Laundering

(“AML”) legislation which would help implement the policies, techniques

and counter-measures to combat money laundering.

In India, The Prevention of Money Laundering Act, 2002 (“PMLA”) was

created under the aegis of FATF.The PMLA forms the core of the legal

framework put in place by India to combat money laundering to be

followed by banking companies, financial institutions and intermediaries by

administering KYC and other reporting requirements such as suspicious

transactions reporting, etc

67 What is FIU?

The Government of India set up Financial Intelligence Unit – India (FIUIND)

on18th November 2004 as an independent body to report directly to

the Economic Intelligence Council (EIC) headed by the Finance Minister.

FIU-IND has been established as the central national agency responsible

for receiving, processing, analyzing and disseminating information relating

to suspect financial transactions. FIU-IND is also responsible for

coordinating and strengthening efforts of national and international

intelligence and enforcement agencies in pursuing the global efforts

against money laundering and related crimes

68 Are Mutual Fund Investors also covered by

PMLA?

Yes, the PMLA covers all Financial Intermediaries, and this includes

Mutual Funds. As such, all investors are required to submit necessary

documentation that will help the Mutual funds complete the KYC

procedure.

69 What is KYC?

KYC is an acronym for “Know your Customer”, a term commonly used for

Customer Identification Process. SEBI has prescribed certain

requirements relating to KYC norms for Financial Institutions and Financial

Intermediaries including Mutual Funds to ‘know’ their customers. This

could be in the form of verification of PAN Number, identity and address,

financial status, occupation and such other personal information.

70 What are the KYC requirements for a Mutual

Fund Investor?

An Individual investor will have to produce copy of his PAN card as proofof-

identity and a separate document as proof-of-address. Non-Individual

Investors will have to produce certain documents pertaining to their

constitution / registration to fulfill the KYC process. A list of documents can

be found on the reverse of the KYC application form

71 Why am I asked to prove my identity, if I have

done no wrong?

As has been discovered in some recent terrorist acts such as the 9/11

bombings in New York or the attack on our Parliament in Delhi, white

collared crime has arrived. Seemingly innocent people have been

involved. It is also observed that had the checks, as now proposed by the

PMLA, been in place, the detection or even pre-emption of the crime could

have been possible. In this context, you will appreciate that providing your

identity / address proof and information about your occupation and

financial status will only help the Government in isolating the few who are

involved in money laundering.

72 All this seems quite scary. Do I need to take

any precautions?

Yes. You should be prudent in your money matters, just as you are in

following some rules such as – say – not carrying unknown articles from

unknown persons when you are traveling across cities. You should not

receive or pay money on behalf of others, unless it is for a genuine

transaction in which you have participated. You should also take care that

you only deal with known individuals or companies which are registered

with or regulated by SEBI, RBI, etc for all financial transactions. Please

also ensure that you fill out forms completely and strike out any portions

which you do not use or need.

73 How do I submit PAN and complete the KYC

formalities?

The process for submission of PAN and completion of KYC formalities

at CVL / Franklin Templeton Investor Service Centres is as follows:

Investors will need to submit a completed KYC application form

affixing a copy of their recent passport-size photograph along with the

following documents at any designated ‘Point of Service’ Centres of

CVL (CDSL Ventures Ltd) or any of the Franklin Templeton Investor

Service Centres.

Documents required

PAN Card (which will also serve as a proof of identity) and

Proof of Address

We have tied up with M/s CDSL Ventures Limited (CVL) to accept

applications for PAN verification and KYC on our behalf. A list of CVL

‘Point of Service’ Centres and our Investor Service Centres is available at

http://www.franklintempletonindia.com under the ‘Contact Us’ section.

All documents must be submitted in original along with a self-attested

copy. The original will be returned across the counter after verification.

Alternatively, investors may submit notarized copies of the requisite

documents. On submission of the KYC form and documents to CVL,

investors will receive an acknowledgement across the counter, a copy of

which must be submitted to us as proof of having completed the

formalities related to PAN verification and KYC.

a) CVL will not separately accept PAN verification documents or KYC

documents. Both procedures must be completed together.

b) CVL will not accept a Distributor-attested copy of the PAN card.

However, the same would be accepted at Franklin Templeton Investor

Service Centres.

For instructions on how to fill the form the please refer to the reverse of

the KYC application form.

74 Does the investor have to approach every

Mutual Fund separately to fulfill these

requirements?

This is not required. For your convenience, we have up with M/s CDSL

Ventures Limited (CVL) to accept applications for PAN verification and

KYC on our behalf, as have a majority of Mutual Funds in India. By

approaching CVL for this process, you only need to complete these

formalities once

The acknowledgement issued by CVL can be submitted by investors to

any mutual fund as proof of PAN verification and KYC compliance.

A list of CVL ‘Point of Service’ Centers and our Investor Service Centres is

available at http://www.franklintempletonindia.com under the ‘Contact Us’

section.

75 Is it necessary to submit the KYC application

and documents / provide acknowledgement

for every transaction?

This is not required. You need to complete these formalities only once by

submitting a copy of the KYC acknowledgement to us. Please ensure to

provide us with a complete list of folio numbers where you are a Holder,

Guardian or Power of Attorney Holder to enable us to verify and update

our records.

76 What happens if I have multiple You can inform the Mutual Fund to register your PAN & KYC compliance

folios/accounts with a Mutual Fund?

against all the folios/accounts where you are a unit holder. However, each

of the holders/guardian/POA in these folios should register their KYC

compliance by submitting a copy of their KYC acknowledgement.

77 How long does it take to get the KYC

formalities completed?

When the KYC application and documents are submitted at the

designated Points of Service, after preliminary verification of documents,

the KYC acknowledgement will be issued across the counter. The

acknowledgement is valid 10 working days from the date of issue.

However, based on final verification of the documents, the same may be

cancelled / rejected in case of deficiency of documents or incomplete

information observed in the final verification. A separate communication

intimating you about the cancellation / rejection of acknowledgement will

be sent by CVL if your application cannot be processed for any reason. If

you do not receive any communication from CVL 10 working days after

you have submitted your documents, you may use the acknowledgement

to register your PAN and KYC status with Mutual Funds.

78 To whom is KYC applicable? Is there any

exemption?

KYC is applicable to all unit holders (including NRI’s), guardians and any

Power of Attorney Holders. There is no exception to the rule. KYC is not

required for Minor applicants and in such cases Guardian need to be KYC

Compliant

79 I do not have a PAN card. Can I get a KYC

acknowledgement without submitting the

PAN card?

No. Submission of copy of PAN card is mandatory while submitting the

KYC application.

80 I already have a KYC number. Do I need to get

a fresh KYC acknowledgement? What will

happen to the number?

If you have a KYC number where you have provided your PAN number

with proof, then you need not approach CVL for a fresh KYC

acknowledgement. Please submit the same to Franklin Templeton. If you

have not submitted your PAN with proof at the time of applying for KYC,

please approach any POS with your existing acknowledgement and

submit your PAN card with Proof to any of the POS. You will receive a

fresh acknowledgement which you can then use for submission to Mutual

Funds. Only acknowledgements from CVL where PAN is quoted will be

accepted for KYC compliance.

81 I have given a Change of Address to CVL.

How long will it take to reflect in my FT

mutual fund?

It will generally take 10 working days for your address to be updated in our

records.

82 I have lost/misplaced my KYC

acknowledgement. What do I do?

If you have misplaced your KYC acknowledgement, please contact CVL’s

Helpdesk on 022-3246 2767/2559 or 022-2272 1261/2008 who will advice

you further.

83 What are the consequences of KYC

acknowledgement cancellation/rejection?

Folio locked, no further investments permitted under that PAN till the KYC

process is completed

85 Is KYC compliance required for a minor

attaining majority?

Upon a minor attaining the age of majority (on completion of 18 years of

age), he/she must complete the KYC process in his/her own name. The

acknowledgement received should be registered with the mutual funds

where he/she holds investments, along with other Bank Details, Signature,

etc as per the requirements of the Mutual Fund.

86 Does the KYC acknowledgement have an

expiry date?

Generally, the KYC process once completed does not have an expiry

date. However, a KYC acknowledgement can be cancelled in certain

circumstances (e.g. if you do not register your acknowledgement with

Mutual Funds for a long period of time). You will be intimated of any such

changes or cancellations by CVL.

However, Mutual Funds reserve the right to request additional information

and documents or perform additional verification as a part of ongoing KYC

compliance.

87 I have printed my Bank Statement online

which contains my address. Can I use it as a

valid Proof of Address?

Bank/DP statements provided as proof of address must be on the

letterhead of the Bank/DP. If not, they should carry the stamp of the bank

and signature of an authorised person. We regret we cannot accept

statements printed on plain stationery without the bank stamp and

signature.

88 My Passport is expiring this month. Will it

cause any problem in getting a KYC

acknowledgement?

When documents such as Passports, Driving Licenses, etc carrying an

expiry date are submitted as proof of address, the document must be

current on the date of submission.

89 I haven’t received my latest Bank Statement.

Can I use my last statement which was sent

out 3 months before?

Electricity /Telephone bill, Bank passbook, Bank statement, demat

account statement submitted as proof of address should not be more than

3 months old as on the date of submission

90 How will I know that the KYC compliance is

registered in my Mutual fund?

KYC compliance for an investor in the folio will reflect in the account

statement stub portion as “KYC Registered”.

91 Do I have to visit a POS personally to obtain

an acknowledgement?

No. If you are not in a position to visit a POS personally, you may send the

form duly filled in along with the necessary documents through your

distributor or representative, who can arrange to obtain the

acknowledgement for you from a POS

92 Is there a charge I need to pay to obtain the

acknowledgement?

Currently, KYC acknowledgements are issued free of cost.

93 If all members in my family invest, can I get a

single KYC acknowledgement?

No. Each individual investor must apply separately for completion of PAN

verification and KYC. This however does not apply to minors, where the

Guardian must have completed these formalities on behalf of the minor.

94 I invest in my minor child’s name? Do I need

to get a KYC acknowledgement for my minor

child as well?

KYC compliance is not mandatory for minors. The guardian must be KYC

compliant.

95 Whom do I inform about change of

Name/Address/Status/Signature etc?

All the above requests must be made via CVL for investors who have

completed their KYC process. A KYC modification form is available with

the POS. You can make a request for change of address / correction of

name / change of status / signature update etc in the form and submit the

same. You need to enclose a copy of your previous KYC

acknowledgement and provide necessary address proof in case of a

request for change in address. You should provide for at least 7 days for

these changes to take effect with all the Mutual Funds with whom you are

invested. Please note that you should not write to the Mutual Fund or its

Registrar for the change of address (unless as a designated POS). The

specified form can be obtained form the AMFI or Mutual Fund website.

96 In case of transmission (in case of death of

the unit holder) cases what are the extra

documents required to be obtained?

If the deceased is the sole applicant, the claimant should produce his/her

KYC acknowledgement along with the other relevant documents to effect

the transmission in his/her favor

97 My income status has now changed form

what I have provided earlier in the KYC

application form. Do I need to request for the

change to reflect in my details submitted?

How do I request for the change

Yes a change in income status must be intimated if such change results in

a change in the income bracket you declared in the application form.

Please apply to any POS in the specified form. No proof is needed for

such change.

98 What if the address in an investors existing

folio is different from what he/she has

registered at the time of KYC?

When investors produce the KYC acknowledgement for an existing folio,

all address details of the holder and the signature will be replaced with the

details as registered in the records of CVL


99 For signature difference in investor request,

Mutual Funds generally ask for a banker’s

attestation. Since a signature is now available

with identity proof, will you still insist on

banker attestation for signature difference?

Signature verification is an important safeguard to ensure the security of

your investments with us. As such, Mutual Funds may conduct extra duediligence

in cases where signatures do not match, including procedures

such as requesting Bank attestation for such transactions. This could be

independent of the KYC procedure.

100 Why do I need to give my Income details?

How can I be sure that it will not be misused?

As per PMLA, it is mandatory for Mutual Funds to obtain financial status details from their investors. The information given by you in the KYC. It may be reported to the FIU, if required by law.

MF ADDRESSES

A list of Mutual Fund address are provided for investors reference.

Click on below mentioned link for MF ADDRESSES.

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