SEBI KYC Norms: SEBI had tightened the KYC rules, due to which more than 1 crore mutual fund accounts were held after April 1…
Market regulator SEBI has given big relief to crores of investors. SEBI has made the recently implemented changes in KYC rules somewhat easier. This is going to benefit more than one crore investors whose mutual accounts were put on hold.
SEBI gave this relaxation in KYC
After the relaxation given by SEBI, now KRA i.e. KYC registration agencies can verify information like PAN, name, address, email, mobile number from the official database. SEBI says that if this information is found in the order then it will be considered as a validated record.
Changes came into effect from April 1
Earlier, SEBI had tightened the KYC rules for mutual fund investors. Due to the changes made by the regulator, many investors were required to get KYC done again. These rules came into effect from April 1, 2024, and the mutual fund accounts of investors who did not conduct fresh KYC were put on hold.
So many accounts were put on hold
It was being told that around 1.3 crore mutual fund accounts were held due to incomplete KYC. KYC registration agencies had said that investors used documents in the initial KYC process which are no longer officially valid or did not complete KYC through Aadhaar, due to which their accounts have been put on hold. However, such investors are expected to get relief from the latest exemption given by SEBI.
Such investors will get relief
Holding a mutual fund account was causing more problems to those investors who are NRIs or live in any other country outside India. He was not able to withdraw from his mutual fund account because his account was put on hold. Now after verification from KRA, KYC can be considered complete and the hold on the account can be removed.
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