Help! Cancellation of SIP due to unforseen non KYC compliance

POSTED BY Sunnydoc ON October 20, 2011 6:13 pm COMMENTS (6)

I just realised that my SIPs got cancelled this month because I was apparently KYC non compliant. I thought my transactions happened this month when I updated my passbook as the amounts have been debited. So where does this money go now? I have not received any refund. I had submitted all my documents through a Karvy POS and thought that the entire process was going smoothly since I did not have any problems in the last 5 months of SIPs.
My questions to the forum:
1. What could the reason be for the sudden KYC non compliance when all was well in the last 5 months?
2. If the money has already been debited from my account even though the SIP is cancelled, then where does it travel, and what do I have to do to get it back?
3. Is there any way the SIPs can be re-purchased at its original intended date (backdate)? I am sure there is no fault at my end for the SIP rejection, then should I not be entitled to it?
Please give your valuable suggestions on what I can do about this.

6 replies on this article “Help! Cancellation of SIP due to unforseen non KYC compliance”

  1. Abhishek says:

    Hi Sunny,

    The money will come into ur bank account or u will receive a cheque.

    Since u already have started the new sip after kyc, u don’t need to do anything. You must have filled forms to restart the sip. No more forms to be filled.


  2. Sunnydoc says:

    Dear Abhishek,

    Yes I have filled a fresh KYC form and started a fresh SIP mandate for all the funds. My question was different:

    1. Where does this money go? Directly to my bank account or by cheque? I asked the customer care each time I got a different response.

    2. Once my KYC is cleared, do the fund houses restore my SIPs as it was originally planned, or am I supposed to fill fresh forms and start all over again? I mean, do I again need to fill forms all over again?


  3. Abhishek says:

    Hi Sunnydoc,

    Wat I understand, the SIP has been cancelled and they will refund the amount to your bank account in 15 days.

    Since KYC is compulsory for all investors for investing in Mutual Funds and your KYC is not done. Hence, you cannot do much but comply with the procedure.

    Steps to be taken :
    a) Do the KYC immediately
    b) Restart your SIPs in the respective fund houses again (You can wait for the cheque and then do the SIP or if you have spare money start now)


  4. Sunnydoc says:

    Thanks for the info Ashal and Abhishek,

    I visited the POS today. They told me that the SIP has been cancelled and that the money will be refunded only by cheque in the next 15 working days. I was asked to fill up a fresh KYC form and again fill fresh SIP forms for all the fund houses. I am not sure now after reading your comment. Is this the correct way?


  5. ashal jauhari says:

    Dear Sunnydoc, first of all please check your KYC status at the following link.

    In case your KYC status is still pending, first of all clear it.

    The debited money is still with the fund house you opted for.

    Once KYC status is clear, ask the fund house to restore the SIPs as usual.



  6. Abhishek says:

    Hi Sunny,

    Please ask for the statement from the Fund house since inception. That should clear ur doubts as it will have all the information. Call their customer care and ask them the above queries, You should get all ur answers.


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