MUMBAI: Markets regulator Sebi has relaxed the revised KYC rule that came into effect on April 1. It stated that if an investor’s KYC was not in order, instead of the registration agencies (KRAs), the investor had to redo their KYC process after submitting all the required documents.
The revision had inconvenienced a large number of investors, especially non-resident Indians, who could not withdraw funds from their mutual fund portfolios, people from the mutual fund industry said.From now on, KRAs can verify the PAN, name, address, email and mobile number from official databases and if found in order, they will be considered as validated records.
Under the new KYC compliance process, about 1.3 crore investors under Sebi’s regulatory purview faced difficulty with their investments in MFs, stocks and commodities trading.
“Based on the feedback received from stakeholders in the securities market and for ease of transacting by clients, the provisions of (KYC compliance) have been reviewed and it has been decided to simplify the risk management framework,” Sebi said.
The revision had inconvenienced a large number of investors, especially non-resident Indians, who could not withdraw funds from their mutual fund portfolios, people from the mutual fund industry said.From now on, KRAs can verify the PAN, name, address, email and mobile number from official databases and if found in order, they will be considered as validated records.
Under the new KYC compliance process, about 1.3 crore investors under Sebi’s regulatory purview faced difficulty with their investments in MFs, stocks and commodities trading.
“Based on the feedback received from stakeholders in the securities market and for ease of transacting by clients, the provisions of (KYC compliance) have been reviewed and it has been decided to simplify the risk management framework,” Sebi said.