Mutual Fund transactions: How to verify your KYC status online

Know Your Client (KYC) is the process by which financial entities such as fund houses and stockbrokers or banks verify an investor’s identity after which the users are allowed to begin with their investment journey.

Sebi has done away with the requirement of linking PAN with Aadhaar to get "KYC-registered" status (File Image)

In a relief for Mutual Fund (MF) investors last week, capital markets regulator Securities and Exchange Board of India (Sebi) removed the requirement of linking permanent account number (PAN) with Aadhaar to get “KYC-registered” status for MF transactions.

As per an earlier Sebi notification, the mutual fund investors were required to update their KYC (know your customer) compliance with Adhaar and PAN documents. Since the beginning of April, numerous mutual fund investment accounts were marked for re-KYC, the failure of which would have resulted in their folio being frozen.

Know Your Client (KYC) is the process by which financial entities such as fund houses and stockbrokers or banks verify an investor’s identity after which the users are allowed to begin with their investment journey.

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The reason cited by the market watchdog for its earlier directive is that some investors have provided non-Aadhaar and non-officially valid documents (OVDs) such as utility bills (electricity, telephone), bank account statements, etc., that are no longer accepted as valid documents for KYC compliance by Sebi. However, Sebi has now allowed OVDs such as driving licence, passport, Aadhaar, and voter ID card.

How to verify your KYC status online

Mutual Fund investors may check the status of KYC compliance through the website of their KYC Registration Agencies (KRAs). Here are the five authorised KRAs – CAMS KRA, CVL KRA, DOTEX KRA, NDML KRA, and Karvy KRA.

Steps verify their KYC status online:

1: Visit your KYC Registration Agency website.

2: On the homepage, look for “KYC Inquiry”.

3: You will be redirected to a new page. Insert your PAN details, solve the captcha, and then press ‘Submit’.

4. After submission, your KYC status will appear on the screen based on your PAN details.

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5. The KYC status will show as registered, validated, or on hold.

KYC Validated: ‘KYC Validated’ status means the documents you submit are authenticated by the issuing authority.

KYC Registered/Verified: If you see KYC Registered/Verified, it means the documents provided could not be independently verified by the issuing authority. However, your email address and/or mobile number have been validated.

KYC on hold: This status means that KYC documents provided by the investor along with the mobile number and email ID of the mutual fund investors are not validated.

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If the KYC status is not “KYC Validated”, this can be updated by submitting a modification request on the mutual fund house’s website or the KRA website.

Other options include downloading the form or visiting the investor service center of the AMC / KRA and submitting the duly filled form with the requisite documents.