Sebi relaxes KYC rules for mutual fund investors; know what it said about Aadhaar-PAN card linking

In a huge relief to crores of mutual fund investors, Sebi has relaxed KYC rules for them. As per the new rule, one can invest in mutual funds even if their Aadhaar card and PAN card are not linked.
Sebi announced these changes in a circular dated May 14.

According to the rule implemented from April 1, due to lack of Aadhaar-PAN link, KYC of investors was put on hold, due to which investors could neither invest in any mutual fund nor redeem their investment.

However, Securities Exchange Board of India (Sebi) has now given relief to a number of mutual fund investors.

According to the new rule, even without linking Aadhaar and PAN, an investor can get their KYC done with OVD i.e. officially valid documents like Aadhaar, PAN, Voter ID, passport and driving license. The KYC status of such an investor will be KYC-registered.

An investor with KYC registered status can deal only with that fund for which KYC has been done and not with any other new fund.

Similarly, if an investor has linked Aadhaar-PAN and got their KYC done, the status of that investor will be KYC-validated.

Everyone can invest in such mutual funds.

If a KYC-registered investor wants to invest in a new fund, they will have to get their KYC done again.

If KYC status is on hold, the investor's email, mobile number, address are not verified.

Investors with KYC on hold will not be able to deal in mutual funds – neither will they be able to invest nor redeem.

Investors can check KYC status on www.CVLKRA.com.

Investors can check KYC status with their PAN number by visiting the KYC inquiry page.

On this page, investors can also see their KYC-registered authorities, i.e., KRA-like CAMS, Karvy, etc.

If the investor's KYC is not validated or registered, you can do the KYC by visiting the website of your KRA with official valid documents.