March 31 deadline: Relief for mutual fund investors on re-KYC directive

Two days ahead of the re-KYC (know your customer) deadline for mutual fund investors, CDSL Ventures, one of the KYC registration agencies, has informed MF distributors that it is no longer mandatory for investors to do their KYC again to continue transacting in their existing portfolio.

“However, these investors would need to undergo fresh KYC as per the extant framework for getting on-boarded with any new intermediary,” the email stated.
 

The registrar and transfer agents CAMS and KFin Technologies had sent communications to MF distributors saying that investors whose KYC is not done using officially valid documents will have to do the KYC again by March 31, 2024.

Failure to redo the KYC before the deadline would have led to blocking of all transactions in the existing portfolios.

While investors do not have to redo the KYC, they still have to validate their mobile number/email ID per the KYC records. In an email sent to MF distributors dated March 28, CDSL Ventures said that the investor’s KYC will be put “on hold” with effect from April 1 if they do not do so.

While investors have got relief in the re-KYC matter, some of the other deadlines relating to mutual funds and demat accounts are drawing close. Investors have to compulsorily declare nominee for their mutual fund accounts and demat accounts by June 30, 2024. The deadline has already been extended twice.

Earlier, the deadline to nominate a beneficiary or opt out of it by submitting a declaration form was December 31, 2023. Prior to this, on 26 September, SEBI had extended the deadline to 31 December. The move is aimed at helping investors to secure their assets and pass them on to their legal heirs.