SECTION I – KYC AND UNIFORM KYC

Part I contains the basic and uniform KYC details of the investor as prescribed by the Central KYC registry (Uniform KYC) to be used by all registered financial intermediaries and
Part II additional KYC information as may be sought separately by the financial intermediary such as a mutual fund, stock broker, depository participant opening the investor’s account (Additional KYC).

WHAT IS CENTRAL KYC REGISTRY?
Central KYC Registry (CKYCR) is a centralized repository of KYC records of customers in the financial sector through an entity substantially owned and controlled by Central Government to receive, store and safeguard the KYC records of a client in digital form. This is to implement uniform KYC norms and inter-usability of the KYC records across entities in the financial sector with an objective to reduce the burden of producing KYC documents and getting those verified every time when the customer creates a new relationship with a entity.

Government of India has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), to act as, and to perform the functions of the Central KYC Registry.

IS UNIFORM KYC COMPLIANCE MANDATORY/COMPULSORY? TO WHOM IS IT APPLICABLE?
Currently, Uniform KYC compliance is mandatory for ALL prospective Individual customers / investors, who wish to open an account with a mutual fund, irrespective of the amount of investment. The effective date for non- individual including shall be announced later.

WHY UNIFORM KYC AND HOW DOES IT BENEFIT INVESTORS?
Uniform KYC has been prescribed in order to bring uniformity in KYC process and eliminate the requirement for investors to undergo the KYC process multiple times when opening accounts with different financial intermediaries like mutual funds, stock brokers, depository participants etc. The CKYCR has prescribed uniform KYC guidelines and a standard KYC form and the supporting documents to be obtained by all registered financial intermediaries. Financial intermediaries shall use this standard KYC form as Part I of their Account Opening Form. The financial intermediary, as part of their account opening process, shall upload the KYC information contained in Part I and documents with CKYCR .

Thus, an investor has to undergo a Uniform KYC process only once and the KYC details are shared by the CKYCR with other financial intermediaries with whom the investor may open accounts subsequently. However, any changes in the KYC information provided earlier need to be updated with any of the intermediaries with whom the investor is maintaining an account.

WHAT IF TWO OR MORE PERSONS WISH TO JOINTLY INVEST IN A SINGLE FOLIO / ACCOUNT?
In case of joint holders in a folio/account, each holder needs to complete the KYC process individually using separate KYC forms.

WHAT ABOUT A MINOR?
n case of investments in respect of a minor, the Parent/Legal Guardian who opens the account on for the minor needs to complete the KYC process. Please refer the Section on Investment on behalf of minors / Change of Guardian & Change in Status on Minor attaining Majority for further details.

INVESTMENT ON BEHALF OF MINORS / CHANGE OF GUARDIAN & CHANGE IN STATUS ON MINOR ATTAINING MAJORITY
1. INVESTMENT ON BEHALF OF MINORS :Where the mutual fund account/folio (account) is opened on behalf of a minor, the following points may be noted that :
1.1 The minor shall be the sole holder in an account. There shall not be any joint accounts with the minor, either as the first holder or as joint holder.
1.2 Guardian in the folio on behalf of the minor should either be a natural guardian (i.e. father or mother) or a court appointed legal guardian. In case of natural guardian, a document evidencing the relationship with the minor shall be submitted, if the same is not available as part of the documents submitted as per 2.3 below. In case of court appointed legal guardian, a copy of the court order in respect of the appointment of the Legal Guardian shall be submitted.
1.3 Documents required while opening the account on behalf of minor:
An attested photocopy of the following duly attested by a Notary Public or a Judicial Magistrate First Class (JMFC) or a Gazetted Officer
1.3.1 Birth certificate of the minor, or
1.3.2 School leaving certificate / Mark sheet issued by Higher Secondary Board of respective states, ICSE, CBSE etc., or
1.3.3 Passport of the minor, or
1.3.4 Any other suitable proof evidencing the date of birth of the minor.
1.4 Standing instructions like SIP, SWP, STP
Standing instructions like SIP, SWP, STP in respect of a minor’s folio shall be registered / executed only till prior to the date of the minor attaining majority, even if the standing instructions in the SIP, SWP, STP mandate form might be for a period beyond that date.

2. CHANGE OF GUARDIAN :
When there is a change of guardian of the minor unitholder either due to mutual consent between the parents or due to demise of the existing guardian, the following documents are required:

2.1 An application for change in guardian of the minor unitholder in a standard / prescribed form along with PAN card copy and KYC acknowledgement of the new guardian and a cancelled cheque evidencing the change of guardian in respect of the minor’s registered bank account with the new guardian’s name.
2.2 A Consent Letter from existing guardian or Court Order for new guardian, in case the existing guardian is alive.
2.3 A copy of the Death Certificate of the deceased guardian, where applicable, duly attested by a Notary Public or a Judicial Magistrate First Class (JMFC) or a Gazetted Officer. The attestation may also be done by authorised official of the AMC after verifying the original.
2.4 The new guardian must be a natural guardian (i.e. father or mother) or a court appointed legal guardian and the new guardian’s name & signature should have been registered as the guardian with the minor’s bankers in respect of the minor’s bank account.
2.4.1 The information regarding the relationship/ status of the guardian as father, mother or legal guardian shall be provided in the application form.
2.4.2 In case of natural guardian, a document evidencing the relationship with the minor shall be submitted, if the same is not available as part of the documents submitted as per 2.3 above.
2.4.3 In the case of a court appointed legal guardian, a copy of the court order in respect of the appointment of Legal Guardian shall be submitted.
2.5 In case of change in guardian with mutual consent between the parents, the signature of the new guardian shall be duly attested by the existing guardian whose signature is registered in the records of the mutual fund against the folio of the minor unitholder in the space provided in the form
2.6 In all other cases, Bank attestation in respect of the signature of the new guardian shall be submitted on a separate letter as per format given in Annexure 1 hereto, from the bank where the bank account of the minor where the new guardian should have been registered as the guardian.
2.7 The new guardian shall be registered as the guardian in respect of the registered bank account of the minor unitholder. A cancelled cheque evidencing the change of guardian in respect of the minor’s registered bank account shall be attached to the application for change in Guardian of Minor Unitholder.

3. CHANGE IN STATUS ON MINOR ATTAINING MAJORITY :
3.1. When the units are held on behalf of the minor, the ownership of the units, vest with the minor. The guardian may operate the minor’s account only until the minor attains the age of majority.
3.2 As per SEBI circular no. SEBI/HO/IMD/DF3/CIR/P/2019/166 dated December 24, 2019, upon the minor attaining the status of a major, the minor in whose name the investment was made is required to provide all the KYC details, updated bank account details including cancelled original cheque leaf of the new account. No further transactions shall be allowed till the status of the minor is changed to major.
3.3 Accordingly, when a minor turns a major, he/she needs to submit an application for change in status from Minor to Major in a prescribed form (hereinafter referred to as MAM form), along with the prescribed documents (as mentioned in para 3.5 below).

The guardian shall not be allowed undertake any financial or non-financial transactions from the date of the minor attaining majority. All existing standing instructions like SIP, SWP & STP, if registered for a period beyond the date on which the minor attains majority will cease to be executed from the date of the minor attaining majority.

In short, the minor’s account shall be frozen for operation by the guardian on the day the minor attains the age of majority and no further customer-initiated transactions shall be permitted till the status is changed from minor to major. (Note: Dividend pay-out or dividend reinvestment, where applicable, shall continue to be processed. In such cases, dividend amount, net of TDS (wherever applicable), shall be credited to the unitholder’s registered bank account or reinvested in the folio, as the case may be.)
3.4 Before submitting the MAM application form for change in status from Minor to Major, the unitholder should –
i. Apply for PAN & obtain a PAN card;
ii. Complete the KYC process; and
iii. Change his/her status in his/her existing bank account from Minor to Major OR open a new bank account immediately upon becoming a major and procure a new cheque book with his/her name pre-printed thereon.
Only after fulfilling the above steps, the applicant should submit the prescribed MAM form duly completed to the AMC/ Registrar along with the requisite supporting documents as explained below.
3.5 Documents required for change in status from Minor to Major
1) The prescribed MAM form duly filled in all respects. Note: Signature of the applicant (minor who has turned major) in the MAM form shall be duly attested in the space provided therein by the parent/guardian whose signature is registered in the records of the mutual fund against the folio of the minor unitholder or by a Notary or a Judicial Magistrate First Class(JMFC). Alternatively, the applicant’s signature may be attested by the unitholder’s bankers in the prescribed form as per format given in Annexure 1.
2) Copy of PAN Card of the applicant
3) KYC Acknowledgment or a duly competed KYC form.
4) A cancelled cheque leaf with the applicant’s name pre-printed or the applicant’s latest Bank Statement/Passbook.
5) Signature attestation by the bankers in Annexure 1 (if the signature of the applicant is not attested by the guardian or a Notary or a JMFC in the MAM form)
6) Nomination Form.
7) A fresh SIP, STP, SWP mandate in the prescribed form (in order to continue the SIP, STP, SWP, if applicable.)
Forms and Annexures:
1. Request for Change in Guardian of Minor Unitholder
2. MAM Form for change in status from Minor to Major
3. Annexure – 1 : Bank Attestation of Signature

WHAT SHOULD BE DONE, WHEN A MINOR BECOMES A MAJOR?
When a minor becomes a major on attaining 18 years of age, she/he has to undergo and complete KYC process in his/her own capacity and notify each of the concerned Mutual Funds/Financial Intermediaries by filling up a prescribed ‘Minor Attaining Majority form’ in order to be able to transact further in his/her folios/accounts. Please refer the Section on Investment on behalf of minors / Change of Guardian & Change in Status on Minor attaining Majority for further details.

WHAT ABOUT A POWER OF ATTORNEY (POA) HOLDER?
To be able to make investments in mutual funds under a POA, the Client i.e. the issuer of Power of Attorney as well as the Constituted Attorney (i.e., the POA holder) have to complete the KYC process in their individual capacity

WHAT ABOUT A LEGAL HEIR OR A NOMINEE, APPLYING FOR TRANSMISSION OF UNITS/PROCEEDS THEREOF, UPON DEATH OF A SOLE UNIT HOLDER / ALL JOINT HOLDERS?
For transmission of units or settlement of proceeds thereof upon death of a sole unit holder or all joint holders, the claimant, i.e., the nominee or the legal heir or the Executor to the Will of the deceased unit holder, as the case be, needs to complete the KYC process in her/his individual capacity in order to get the securities/units transmitted in his/her folio/account.

I WISH TO START AN SIP OF JUST RS.500 PER MONTH. DO I NEED TO FULFIL THE UNIFORM KYC PROCESS?
Yes. KYC is mandatory irrespective of the amount of investment in a mutual fund – whether through lump-sum investment or via Systematic Investment Plan (SIP)/ Systematic Transfer Plan (STP)/ Dividend Transfer Plan (DTP) and Switch transactions etc.

I HAVE SOME UNITS OF PRE-KYC ERA. I WISH TO REDEEM THEM. DO I HAVE TO UNDERGO THE UNIFORM KYC PROCESS?
Yes, if you wish to redeem units of pre-KYC era, you will need to complete the KYC process and submit your PAN.

WHAT SHOULD I DO TO COMPLETE THE UNIFORM KYC PROCESS? WHOM SHOULD I APPROACH?
The duly completed KYC form along with supporting documents such as proof of identity and proof of address and the Account Opening Form may be submitted at any of the Points of Service (POS)/Investor Service Centre (ISC) of any mutual fund. The In Person Verification (IPV) also needs to be completed and certified by an authorised person on the KYC form itself. Your distributor/financial advisor will be able to assist you in this regard.

WHAT SUPPORTING DOCUMENTS DO I NEED TO SUBMIT TO COMPLETE THE KYC PROCESS?
The list of documents which could be submitted towards proof of identity and proof of address is printed on the KYC form.

ARE THE SUPPORTING DOCUMENTS REQUIRED TO BE ATTESTED? IF YES, BY WHOM?
Yes. All supporting documents submitted with the KYC form must be certified i.e., attested by an appropriate authority as per instructions printed on the KYC form. Alternatively, one may submit self-attested photocopies of the supporting documents at the POS. In such a case, one must carry the original documents for being verified by the officials of the POS, who will return the original documents across the counter, after verification.

WHO IS AUTHORISED TO DO IPV?
In case of mutual funds, the IPV can be performed by an authorised official of a mutual fund, AMFI registered Distributor or an authorised officer of a Scheduled Commercial Bank.

WHAT PROOF DO I NEED TO SUBMIT TO A MUTUAL FUND FOR HAVING FULFILLED THE UNIFORM KYC PROCESS, WHILE INVESTING?
You will be allotted a 14-digit unique identification number by CKYCR which should be quoted at the time of opening an account with any financial intermediary.

ARE THERE ANY ADDITIONAL REQUIREMENTS FOR AN NRI TO BE UNIFORM KYC COMPLIANT?
Yes. In addition to a certified true copy of the passport, a certified true copy of proof of the overseas address and permanent address is also required. If any of the documents (including attestations/certifications) towards proof of identity or proof of address is in a foreign language, the same will need to be translated into English before submission. The supporting documents can be attested by the Indian Consulate or overseas branches of scheduled commercial banks registered in India.

IS THERE ANY SPECIAL REQUIREMENT FOR A PIO (PERSON OF INDIAN ORIGIN)?
The requirements applicable to an NRI as explained above, are also applicable to a PIO. However, a PIO is additionally required to submit a certified true copy of the PIO Card.

I HAD COMPLETED KYC COMPLIANCE BEFORE THE INTRODUCTION OF CKYCR REGIME. DO I NEED TO UNDERGO THE UNIFORM KYC ONCE AGAIN WITH ANY FINANCIAL ENTITY?
If you had undergone KYC process before the introduction of Uniform Centralised KYC by CKYCR, you will need to provide certain ‘additional KYC information’ as and when you open a new account with any mutual fund. It is however, advisable to complete the Uniform KYC process immediately.

SECTION II – ADDITIONAL KYC

WHY AM I BEING ASKED TO PROVIDE ADDITIONAL KYC INFORMATION TO EACH AND EVERY MUTUAL FUND IN ADDITION TO COMPLETING THE KYC WITH A KRA/CKYCR??
As explained under Q 1 above, in order to comply with the second stage of the KYC process (Additional KYC), the customer needs to furnish additional KYC Information as required under Prevention of Money Laundering Act to each mutual fund, as part of Account Opening process, as the same is not included in the basic KYC information registered with the KRAs/CKYCR.

WHAT IS THE ‘ADDITIONAL KYC INFORMATION’ THAT I NEED TO PROVIDE?
In case of Individuals, the additional details to be provided are:

Gross Annual Income details
Occupation Details
Politically exposed Person status
Addresses in other jurisdictions other than India, where the customer has tax residency
In case of Non-Individuals, the entire KYC process needs to be done afresh, due to significant changes in KYC requirements

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 all SEBI registered intermediaries (including mutual funds) to obtain financial status details from its investors. Please note that this information is sought in the form of income slabs (and not a specific figure) and no proof of income is required. The information given by you in the Account Opening Form (AoF) will be treated in a confidential manner and used for regulatory purposes only, if called for.

DO I NEED TO INFORM ABOUT MY CHANGE OF INCOME STATUS?
Yes. If you have an increase or a decrease in your income, which would effectively change the income bracket or the net worth that you have previously declared, you should inform the mutual funds with whom you hold an account/folio. No proof is needed. In fact, you need to update if there is a change in any of the additional KYC information previously submitted.

HOW DO I PROVIDE / UPDATE THE ‘ADDITIONAL’ KYC INFORMATION?
For Individuals, a ‘KYC Change Request form’ may be submitted. In case of Non-Individuals, the entire KYC process needs to be done afresh, due to significant and major changes in KYC requirements. Duly filled KYC Change Request form or a complete Non-individual form can be submitted to any of the POS/ISCs of any Mutual Fund.

IS THERE ANY TIMELINE FOR PROVIDING THE ‘MISSING’ KYC INFORMATION?
You may provide the additional/missing KYC information at the time of –

opening of a new account/folio with a mutual fund or
updation of any KYC information, such as address, provided earlier.

SECTION III – ULTIMATE BENEFICIAL OWNER (UBO)

WHAT IS A UBO?
UBO is an acronym for Ultimate Beneficial Owner. A UBO is the is the natural person or persons, who ultimately owns, controls or influences a customer and/or persons on whose behalf a transaction is being conducted, and includes a person who exercises ultimate effective control over a legal person or arrangement. In terms of SEBI Circular CIR/MIRSD/2/2013 dated January 24, 2013, all intermediaries are required to identify the beneficial owners of their clients and take reasonable measures to verify the identity of such persons.

WHO HAS TO PROVIDE DETAILS OF UBO?
All non – individuals investors are required to provide details of the UBO(s)

IS ANY ENTITY EXEMPTED FROM PROVIDING THE UBO DETAILS?
Yes. In case the client entity is a company listed on a stock exchange or is a majority owned subsidiary of such a company, the details of shareholders or beneficial owners are not required to be provided. However, such a company/entity has to submit an appropriate declaration.

WHAT IS THE PURPOSE OF IDENTIFYING AN ULTIMATE BENEFICIAL OWNER?
The Prevention of Money Laundering Rules, 2005 inter- alia mandates that every intermediary shall identify the beneficial owner and take all reasonable steps to verify his identity. SEBI Circular CIR/MIRSD/2/2013 dated January 24, 2013 has prescribed a uniform approach to the securities market towards determination of beneficial ownership. The term reflects a recognition that a person in whose name the investments are held may not necessarily be the person who ultimately controls such investments or who is ultimately entitled to such investments.

WHO CAN SIGN THE UBO DECLARATION FORM?
Only persons authorized to represent a company or entity in accordance with its constitution/ resolutions may complete and sign the UBO declaration form.

HOW IS THE IDENTITY OF THE ULTIMATE BENEFICIAL OWNER DETERMINED?
The identity of the UBO can be ascertained from the following information:

For investments of non-individuals (other than trusts) viz., company, partnership or unincorporated association/body of individuals, the identity of the natural person, who, whether acting alone or together, or through one or more juridical person, exercises control through ownership or who ultimately has a controlling ownership interest. Here controlling ownership interest means ownership of/entitlement to:
more than 25% of shares or capital or profits of the juridical person, where the juridical person is a company;
more than 15% of the capital or profits of the juridical person, where the juridical Person is a partnership; or
more than 15% of the property or capital or profits of the juridical person, where the juridical person is an unincorporated association or body of individuals.
Where there exists doubt as to whether the person with the controlling ownership interest is the beneficial owner or where no natural person exerts control through ownership interests, the identity of the natural person exercising control over the juridical person through other means such as through voting rights, agreement, arrangements or in any other manner.
Where no natural person is identified under above clauses the identity of the relevant natural person who holds the position of senior managing official shall be declared as the UBO.

WHO IS CONSIDERED THE UBO IN CASE OF A TRUST?
The identity of the settlor of the Trust, the trustee, the protector, the beneficiaries with 15% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.

HOW CAN I REGISTER THE UBO?
You can register the UBO details by filling up the prescribed ‘Declaration of Ultimate Beneficial Ownership’ Form and submitting the same to the nearest ISC or POS of the Mutual Fund or its Registrar or MFU POS.