Mutual funds need to follow Know Your Customers

Mumbai, Dec 27 (UNI) In order to comply with regulatory provisions, mutual funds have to follow enhanced norms of Know Your Customers(KYC).

For the convenience of investors in mutual have made special arrangements with CDSL Ventures Ltd (CVL), a wholly-owned subsidiary of Central Despository Services Ltd (CDSL) under the initiative and umbrella of Association of Mutual Funds in India (AMFI).

Instead of providing the required documents again and again to different mutual funds in which one would like to invest, CVL, on behalf of all mutual funds will do the process and issue a unique Mutual fund Identification Number (MIN).

Talking to reporters, AMFI Chairman A P Kurian said, ''Investors have to provide KYC documents and information only once to obtain MIN. Quoting the MIN, investors could invest in the schemes of all mutual funds without submitting the KYC documents''.

''Further changes in address or other details could be intimated to any of the points of services (PoS) and the same will get updated in all the mutual funds where the investor has invested'', said Mr Kurian.

''MIN will be provided absolutely free of cost to the investors.

To begin with investors investing Rs 50,000 or more will have to obtain MIN effective from January first, 2007,'' added Mr Kurian.

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