FATCA & KYC Updates For Mutual Fund Investors:

As per recent notification from AMFI – Association Of Mutual Funds In India – mutual funds need to adhere following requirements from November 2015.

1. Mandatory Additional KYC details : Investor need to provide additional KYC details like -Gross income,Occupation,Net-worth,political association etc.This set of details is captured in the scheme application form, in addition to standard KYC form.
2. Investor will not able to execute Fresh purchase or switch  transaction if KYC status is on hold,rejected or old kyc.
3. UBO details for Non-individual investors : Non-individual investors need to provide Ultimate Beneficial Ownership (UBO) details while opening account with any mutual fund.
4. FATCA / CRS declaration : New investors need to provide FATCA / CRS declaration while opening account in India.FATCA – Foreign Account Tax Compliance Provisions – requires mutual funds to collect information about each investors tax residency.
5. One can update FATCA status online using Karvy or CAMS website.Or use following forms to update FATCA status.

• Karvy FATCA Form
• CAMS FATCA Form
• Sundaram FATCA Form
• Franklin Fatca form.

Mutual funds through their website or through their RTAs – Registrar & Transfer Agents have provided facility to update FATCA status online.Investor authentication will be through confirmation of mobile no or email id or both. OTP will be send to investors mobile or email after he / she enters PAN number.

1. Karvy FATCA Online Update
2. CAMS FATCA Online Update.
3. Sundaram FATCA Online Update.
4. Franklin FATCA Online Update

Failing these,all fresh purchase / switch transactions of new investors will be rejected but SIPs/ STPs registered before Novermber 2015 will not be affected.

Similarly from January 01, 2016 existing investors need to update all missing KYC information along with  IPV – in person verification done by authorized agencies or KYD compliant distributors.

What investor need to do :

Check KYC status at KRA website and take following action :

Failing these, fresh purchase / switch transactions will be declined. But for SIPs/ STPs registered till Dec 31, 2015 thee will not any impact on transaction.