KYC

POSTED BY Phani ON February 12, 2012 12:00 am COMMENTS (5)

Hi,
Today, I went to “Bajaj Capital” to submit the KYC application form and they refused to accept the form saying it is mandatory to do a minimum investment of Rs.5000 in any mutual fund along with KYC application form.Is this a new rule ? I dont find such a rule on cvlindia website.

Regards,
Phani

5 replies on this article “KYC”

  1. BanyanFA says:

    Good spot Rakesh. I have updated the document to reflect this gap.

    Regards
    BFA

  2. Dear Rakesh, Please check the following circular of SEBI.

    SEBI vide Circular No. MIRSD/SE/Cir-21/2011.

    As per this circular, a standard KYC form has been prepared & the same ‘ll be applicable to all the intermediaries, institutions affiliated to SEBI in any way for investments.

    With this circular IPV (In person verification) has been made compulsory & you already know IPV invites a cost hence no MF or distributor ‘ll provide your KYC unless you are not investing (read giving business).

    Yes online portal like fundsindia or moneysights or fundsupermart are offering this KYC free of cost.

    Thanks

    Ashal

  3. BanyanFA says:

    Hi Rakesh,
    As per the new rule, KYC form will not be accepted unless it is accompanied with a fresh investment. This rule has come into play from 1 Jan 2012.

    Regards
    BFA

    1. Rakesh Kumar says:

      Hello BFA,

      Thanks for the update.

      I could not find where its mentioned that investment is mandatory.

      Thanks,
      Rakesh

  4. Rakesh Kumar says:

    Hi Phani,

    Investment is not mandatory along with KYC form submission.
    Try with some other fund house.

    Or you can try with FundsIndia.com or moneysights.com.They will do your KYC when you open an account with them without any initial investment.

    Regards,
    Rakesh

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