you invest more than Rs50,000 in mutual funds at one
go, you might need a special identification card. That's
for starters. CNBC TV18 finds that eventually all mutual
fund investors will need such IDs.
mutual funds simply sought a copy of your PAN card.
But from the first of November, the mutual fund industry
will implement the "know your customer norms".
P Kurien, chairman, Association of Mutual Funds of India
(AMFI) said, "Every fund follows a uniform procedure,
which is subservient to the law of the land, friendly
to the investors and uniform across the industry."
will appoint a service provider to collect copies of
documents like photo identifications, PAN cards and
proof of residence from investors and verify them against
will then issue a unique number to an investor. The
investor must quote this number in subsequent mutual-fund
applications. The service provider will also maintain
a system through which the information is accessible
to registrars and mutual funds.
may soon sign up with CDSL and SHCIL, which will act
as service providers to facilitate this process. This
will be a one-time procedure for investors and acceptable
to all fund houses in the industry.
plans to bring existing investors also under this system.
Kurien adds, "Once that gets accepted by the people