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The Case of Re-verification

The mandatory in-person verification means that you need to go in for the KYC yet again...

Investment compliance is an issue which is faced not just by corporate entities but also investors these days. The know your customer (KYC) compliance makes a re-appearance in a new avatar which needs to be adhered before March 15, 2013. Re-compliance is applicable only for those investors who had their KYC compliance undertaken before January 1, 2012.

The move comes into effect following the Sebi guidelines issued in April 2012, in which the regulator had implemented uniform KYC guidelines across all intermediaries in the securities market like stock brokers, mutual funds and portfolio managers. The idea was to eliminate duplication of the KYC compliance under different intermediaries.

What’s changed?
In the new scheme of things, it is mandatory for all the intermediaries to carry out an in-person verification (IPV) of their clients. This ensures physical presence of the investor. So, in case of mutual fund investors, the IPV can be implemented by AMCs and distributors who have successfully undergone the know your distributor compliance and registrar and transfer agents (RTA). Alternately, investors have the option to make a trip to the KYC registration agency (KRA), mutual fund distributor or the fund’s RTA such as Computer Age Management Services (Cams) and Karvy Computershare or the AMC itself to complete the KYC compliance.

There has been a change in the KYC application form where investors are required to fill their gross annual income or net worth. Investors can use this opportunity to fill any missing information in their existing KYC. To check if you have a valid KYC compliance, visit the CDSL Ventures website www.cvlindia.com. If the status reads ‘CVLMF’ you comply to the old guidelines and if your status reads ‘verified by CVL KRA’ you need not worry as you comply with the new norms.