Rajen Gala

Physical KYC Documents required: Indian Address proof: Aadhaar- first 8 digits must be masked on copy and form. Aadhaar submitted as proof are subject to validation if the validation is done, then it will show as \”KYC validated\”. Only after that, transaction can be processed. If it is not validated, then transaction will be rejected. Passport (Mandatory for NRI and Navy) Driving licence Rent agreement. Any government official document Foreign address proof- Any of the above mentioned except Aadhaar card. Navy Card or CDC certificate- Only for Navy officials.   C-KYC PAN Indian address proof (Aadhaar- first 8 digits to be masked on copy and form) Aadhaar based KYC will be instantly sent for validation and if the validation is completed, then it will show as \”KYC validated\”. Only after that, transaction can be processed. If it is not validated, then transaction will be rejected. Passport (Mandatory for NRI and Navy) Driving licence Rent agreement. Any government official document Foreign address proof- Any of the above mentioned except Aadhaar card. NAVY Card or CDC certificate- Only for NAVY officials   E-KYC Aadhaar & PAN Validation Investor to provide Aadhaar number, mobile number & email ID (at least one should be registered with Aadhaar). OTP is sent by CAMS to both mobile & email ID once UIDAI validation is complete. On successful OTP verification, Investor to upload PAN copy which is validated with NSDL. For Address proof verification, UIDAI will send OTP to investor to either of registered mobile or email in Step1 On successful authentication of OTP, UIDAI will Provide Aadhaar PDF and investor photo. Additional Steps Investor to fill-in additional details – resident status, occupation etc. Signed cancelled cheque to be uploaded by Investor. Basis OCR, Bank details will get filled automatically. IMPS validation basis the cheque uploaded to match name on cheque with the name in PAN. If there is 70+% name match, investor will proceed to upload e-signature. Upon successful submission of details, KYC status becomes — Under Process & this PAN becomes investment ready. Eligibility This will be treated as full KYC without any limit on the investment amount. Offline investments will also be permitted. This application cannot be used by Minors & NRIs. Point to remember: Thumb impression if used, should be attested by banker.  

NPO (Non-Profit Organisation) Reference to PML (Provision of Money-Laundering) Amendment dated Mar 07,2023, if the Trust, Society or companies as defined in amendment is an NPO, then it must get itself registered in the DARPAN Portal of NITI Aayog https://ngodarpan.gov.in . This has been made mandatory as per PML amendment dated March 07, 2023, requiring the financial institutions, intermediaries to get the NPO entities registered in DARPAN before allowing transactions. Completing the NPO Darpan Registration process is necessary for making investments and other financial transactions. \”Non-profit organization\” means any entity or organisation, constituted for religious or charitable purposes referred to In clause (15) of section 2 of the Income-tax Act, 1961 (43 of 1961), that is registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860) or any similar State legislation or a Company registered under the section 8 of the Companies Act, 2013 (18 of 2013). New accounts / folios will not be created for NPOs by the Mutual Funds, without such MFs/RTAs need a declaration from the NPOs along with the DARPAN registration certificate. All applicable Trusts/Societies/ Section 8 companies should submit the details in the NPO declaration form. Other Trusts/Societies who do not fall under the new NPO definition should confirm that they are not falling under the said NPO definition by submitting the NPO declaration form. NPO declaration and NPO registration in DARPAN are required from existing as well as new investors who are Trusts, Societies and Section 8 Companies. UBO (Ultimate Beneficial Owner) As per revised guidelines the controlling ownership interest % has been revised from 25% OR 15% to 10% for Corporate/Trust, to consider as an UBO. If no individual is identified as UBO, basis the above threshold, then details of Senior Managing Official (SMO) should be provided as UBO. The following UBO details are now made mandatory. PAN of UBO Country of Tax Residency of UBO TIN (Tax Identification Number) UBO\’s Date of Birth UBO PEP (Politically Exposed Person) information. % of Controlling / Beneficial interest UBO KYC status as validated. Transactions will not be allowed unless UBO/SMO PAN is KYC Complied You can visit any of the KRA websites and check the KYC status of the UBO. E.g, visit the link for CVL KRA (https://www.cvlkra.com/ )  Go to KYC Inquiry > Search KYC > Enter PAN No > Verify CAPTCHA > Submit. Wherever PAN is not applicable for UBO or SMO (E.g., If the UBO / SMO is a foreign national), TIN must be provided. The NPO / UBO declaration need not be submitted separately for each fund. These declarations are required at MF RTA level (i.e., CAMS and Kfintech) separately. Once these are submitted to RTA, it will get updated for all MFs serviced by that RTA.  Other Regulatory requirements: Income Slab: Income Declaration is mandatory; we would like to highlight that investment applications are submitted with the assumption that the information will be updated from KRA. However, KRAs do not capture this information and hence if income slab values are not available on the investment application form, transactions will be liable for rejection. Tax Identification Number (TIN) for all NRI Categories: TIN is mandatory, wherever investor has declared the country of tax residency other than India in FATCA/CRS Declaration. Overseas address for all NRI Tax Categories: Overseas address is mandatory on the application form. IFSC Code: IFSC code is mandatory for all folios. This also enables to complete the bank account verification and third-party validation through penny drop mechanism.

Validation of KYC SEBI has mandated that KYC records of all existing client (who have used Aadhaar or other OVD (Officially Valid Document)) shall be validated. KYC records where Aadhaar has been used as OVD at the time of initial KYC- KRAs have sent email with a link to validate the Aadhaar. For investors without email ID – must revalidate KYC by submitting physical KYC modification request. KRAs would verify PAN (including PAN Aadhaar linkage), Name, Address, Email address and Mobile Number. KYC status where all the attributes mentioned above are verified with official databases would be updated as \’KYC Validated\’. KYCs, where any of the attributes mentioned cannot be verified with official databases would be updated as \’KYC Registered\’, SRI (SEBI Registered Intermediary) who is onboarding a new investor with the KYC status as Registered would need to, perform a re-KYC and submit a modification request with all supporting documents to the KRA for getting the KYC \”Validated/Registered\”. If the modification request is put \’On Hold\’ / \’Rejected\’ by KRA, the SRI shall not allow them to transact further in the securities market till the KYC status gets \’Registered\’ or \’Validated\’. PAN verification for all new folios AMCs are mandated to validate PAN with Income Tax to ensure valid and correct PANs are stored in the investment.  For this, AMCs push PAN and investors name through UTITSL/NSDL for validation of PAN at Income Tax. This process will undergo change effective April 1, 2024, as per Income Tax directives. According to the change AMCs have to ensure below information is collected for all the holders, Guardian, POA and UBO, if not already available and passed for validation: Name as per PAN card / Name of the PAN Holder (Mandatory) Date of Birth / Date of Incorporation — DD/MM/YYYY (Mandatory) Father/Mother Name The above verification will be done for following scenarios and for transactions reported across all platforms: PANs which are not validated PAN related NCT requests Transmission Minor to Major updation request. Nomination for mutual fund investments Investors must either update the nomination details or opt out of the nomination in the folio. In the absence of compliance before June 30, 2024: Mutual Fund folios may be restricted for transactions. Investors will not be able to redeem their investments. FMP maturity payout/IDCW payouts (if any) will be moved to unclaimed scheme/plan. The nomination can be made only by individuals applying for/holding units on their own behalf singly or jointly. In case of multiple unitholders in the folio, all holders need to sign the Nomination opt in/opt out form irrespective of the mode of holding being \”Anyone/Either or Survivor\”. Two factor authentication   (2FA) for transactions The 2FA validations for online transactions are implemented including for systematic Validation will be done with the email id/mobile number registered in the folio. Failure of 2FA validations may result in non-processing of transactions. Hence investors are requested to ensure that valid email ID mobile number is registered in their folio and intermediaries are requested to ensure these details are updated in their respective database. For channel partner and exchange platforms, email address and mobile number are validated (delivery status) at the time of initial transaction reported by the platforms. These validated email address and mobile numbers are considered for future transactions in the folio. Hence, it is important to report subsequent transaction with validated email address and mobile Standard validation of Email and Mobile Number (family flag related) Investor\’s own valid email id / mobile number should only be registered in their folios. The details will be checked for correctness (in terms of syntax, invalid numbers, domains etc.) and will be authenticated by sending an SMS / email directly to the unitholder\’s email id and / or mobile number. Email IDs / mobile number of Distributors / AMC / RTA employees should not be registered against a folio unless it is an own investment. Investors will have to provide appropriate family declaration to register common email /mobile across family members.

PAN Aadhaar linking It is mandatory to link Aadhaar with PAN for the PAN’s with KYC status as resident individual. In case Aadhaar is not linked with PAN, the PAN will become inoperative. Accordingly, folios linked with such PAN are restricted for transactions. For NRIs, tax status should be first updated in the income tax records. Such updated PANs are considered as operative PAN for transaction. Note, tax status alone in investments as NRI will not suffice the Aadhaar PAN linking requirement. PAN Adhaar linking is not mandatory for individuals for whom obtaining either PAN or Aadhaar is not eligible for e.g. Residing in states of J&K, Assam and Meghalaya A non-resident as per Income Tax Act 1961 Of the age 80 years or more at any time during the financial year Not a citizen of India Residents of Sikkim To link your Aadhaar with PAN via Web, please Click here to visit the Income Tax e-filing portal and link your Aadhaar with PAN. (Please keep your mobile phone handy to receive and submit the OTP (One Time Password) during the process) To link your Aadhaar with PAN via SMS, type a message in UIDPAN format i.e., UIDPAN (space) 12-digit Aadhaar number (space) 10-digit PAN number. Send this SMS from your registered number only to either 567678 or 56161. To check the status of linking of your Aadhaar with PAN please, Click here In case Aadhaar is not linked with PAN: PAN will become inoperative. PAN based KYC will turn invalid. All financial and non-financial transactions including systematic transactions will be restricted. Updation and change of PAN will be allowed provided the PAN is linked to Aadhaar. IDCW reinvestments and payouts will be moved to unclaimed. Since PAN is invalid, Form 15G/H will not be accepted. Attract higher TDS deduction on the payouts wherever applicable / as per Income Tax.   One Time Mandate (SIP/Lumpsum) NPCI (National Payment Corporation of India) has issued guidelines to restrict the end date of the mandates for maximum of 40 years. Currently extension has been provided in consideration that pre-printed mandates with end year as 2099 are already in circulation. Effective April 1, 2024, the maximum tenure on mandate should not exceed 40 years. NPCI has provided guidelines that \”Mandates can be issued for a maximum duration of 40 years from the date of issuance\”. Any mandate without the prescribed narration will be rejected. Hence, it is recommended to use new mandates which has 40 years maximum tenure narration pre-printed for SIP or lumpsum registration. The \’until cancelled\’ option will no longer be available, and investors will now have to mention a specific end date which cannot be more than 40 years from the date of issuance, this is on basis of the guideline mentioned above. The existing perpetual SIPS will not be affected.   Folios without PAN/PEKRN All financial and non-financial transactions including systematic triggers are being restricted. IDCW (Income Distribution cum Capital Withdrawal) reinvestments, payouts and FMP maturity payouts will be moved to unclaimed scheme/plan. Investors will not be able to lodge any complaint with AMC until the PAN is updated. Since PAN is not available, form 15G/15H are not accepted and TDS is being deducted at 20%. Updation and change of PAN will be allowed provided the PAN is linked to Aadhaar. Brokerage payable against investors whose KYC is invalid will be held back.   PAN can be updated by uploading request in below link: https://mfs.kfintech.com/panupdation/ Select fund name. Keep the Folio number, PAN / PEKRN details of all holders handy. Keep the image file of self-attested pan card ready. Upload of PAN copy to be done separately for each folio. Alternatively, PAN/PEKRN can be updated by providing a written request at the AMC/RTA