The Securities and Exchange Board of India has issued a circular regarding the process to be followed for Aadhaar-based electronic KYC exercise for domestic investors. According to the circular, direct investors can simply go to the AMC’s website and use Aadhaar to do the e-kyc process. However, mutual fund distributors who want to undertake Aadhaar authentication services through KUAs (KYC User Agency) should enter into an agreement with the KUA. They should also get themselves registered with UIDAI as sub-KUAs.
“This is definitely going to make life easier for a lot of retail investors, especially young investors. Many young, new investors are wary of the offline paperwork and are comfortable with digital kyc processes,” says Vishal Dhawan, Founder, Plan Ahead Wealth Advisors, a Mumbai-based wealth management firm.
Sebi cited the circular by the Department of Revenue, Ministry of Finance, issued on 9 May on procedure for processing of applications under section 11A of the Prevention of Money Laundering Act, 2002(“PMLA”), for use of Aadhaar authentication services by entities other than the banking companies. The use of Aadhaar-based KYC had stopped after the Supreme Court, in its judgement in September,2018, struck down Section 57 of the Aadhaar Act as unconstitutional. As a result of the judgement, no com ..
Mutual fund advisors say the re-introduction of Addhar based digital verification would draw many young investors to mutual funds. Advisors say many young investors change their decisions to invest in mutual funds when they face some trouble with offline procedures. "We have seen people in their 20s decide against investing in the one week that their application takes to get processed. The ‘inconvenience' of filling forms, taking out time, paperwork is a hindrance for them,” says Vishal Dhawan.
However, there are many investors who are still not ready to move to the online mode because they are sceptial about the security online. For them central-kyc and physical verification is a better way of doing things. Mutual fund advisors also say that senior citizens, retired investors, investors who are not tech savvy still prefer the offline mode more than the online kyc. “There are investors who don’t even use net banking. They are not comfortable giving away their Aadhaar details etc to any ..
Sebi has given clear instructions on how retail investors and distributors can approach the new e-kyc. Here are the points that you should know.
If you are investing in a mutual fund scheme directly through the website of the mutual fund house, you can just go to the website, put in your Aadhaar number and complete your KYC by putting in some details and the OTP that comes on your registered mobile number. Sebi has directed the AMCs to not store the Aadhaar number in the databases of the company.
If you are investing via a mutual fund platform, it needs to be either a KUA (KYC Using Agency) or the SEBI registered intermediary which is also a Sub-KUA for you to use the e-KYC facility.
If you are investing via a mutual fund distributor or appointed person for e-KYC through Aadhaar. The Sebi-registered distributors will perform e-KYC using registered devices with KUAs. Investor will enter Aadhaar number and biometric and provides consent on the registered device.
We will be happy to help you to select your mutual fund plan. Get more details here: Mcx Tips, Derivative-Free Trial, Stock tips Call on:9977499927
“This is definitely going to make life easier for a lot of retail investors, especially young investors. Many young, new investors are wary of the offline paperwork and are comfortable with digital kyc processes,” says Vishal Dhawan, Founder, Plan Ahead Wealth Advisors, a Mumbai-based wealth management firm.
Sebi cited the circular by the Department of Revenue, Ministry of Finance, issued on 9 May on procedure for processing of applications under section 11A of the Prevention of Money Laundering Act, 2002(“PMLA”), for use of Aadhaar authentication services by entities other than the banking companies. The use of Aadhaar-based KYC had stopped after the Supreme Court, in its judgement in September,2018, struck down Section 57 of the Aadhaar Act as unconstitutional. As a result of the judgement, no com ..
Mutual fund advisors say the re-introduction of Addhar based digital verification would draw many young investors to mutual funds. Advisors say many young investors change their decisions to invest in mutual funds when they face some trouble with offline procedures. "We have seen people in their 20s decide against investing in the one week that their application takes to get processed. The ‘inconvenience' of filling forms, taking out time, paperwork is a hindrance for them,” says Vishal Dhawan.
However, there are many investors who are still not ready to move to the online mode because they are sceptial about the security online. For them central-kyc and physical verification is a better way of doing things. Mutual fund advisors also say that senior citizens, retired investors, investors who are not tech savvy still prefer the offline mode more than the online kyc. “There are investors who don’t even use net banking. They are not comfortable giving away their Aadhaar details etc to any ..
Sebi has given clear instructions on how retail investors and distributors can approach the new e-kyc. Here are the points that you should know.
If you are investing in a mutual fund scheme directly through the website of the mutual fund house, you can just go to the website, put in your Aadhaar number and complete your KYC by putting in some details and the OTP that comes on your registered mobile number. Sebi has directed the AMCs to not store the Aadhaar number in the databases of the company.
If you are investing via a mutual fund platform, it needs to be either a KUA (KYC Using Agency) or the SEBI registered intermediary which is also a Sub-KUA for you to use the e-KYC facility.
If you are investing via a mutual fund distributor or appointed person for e-KYC through Aadhaar. The Sebi-registered distributors will perform e-KYC using registered devices with KUAs. Investor will enter Aadhaar number and biometric and provides consent on the registered device.
We will be happy to help you to select your mutual fund plan. Get more details here: Mcx Tips, Derivative-Free Trial, Stock tips Call on:9977499927
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