Soon after the Budget announcement, the Association of Mutual Funds in India (AMFI) has cancelled the need to have a MIN. AMFI has issued a press release stating that MIN stands withdrawn effective March 2, 2007.
Instead, investors will now only have to give their PAN and such certain other documents and information to comply with KYC norms under the Prevention of Money Laundering Act (PMLA).
What exactly is KYC? Basically, it is just an acronym for "Know your Customer", a term commonly used for the customer identification process. SEBI has prescribed certain requirements relating to KYC norms for financial institutions, financial intermediaries and mutual funds. This could be in the form of verification of identity and address, financial status, occupation and such other personal information.
AMFI had requested investors investing more than Rs 50,000 at a time in a mutual fund to produce a MIN. Now, the PAN will be the only identification and reference number.
CDSL Ventures Limited (CVL), a wholly owned subsidiary of Central Depository Services (India) Limited, was given the task of issuing the MIN. CVL had, in turn, appointed entities to act as Points of Service (POS) - official offices to accept and verify documents and generate a MIN.
The AMFI press release said that in order to help investors submit the required documents and information just once, the current system of providing the documents and information at POS of CVL will continue. However, no new number will be issued.