Know Your Customer (KYC): The need to "Know Your Customer" is vital for the prevention of money laundering. In terms of the Prevention of Money Laundering Act, 2002, the Rules issued there under and the guidelines/circulars issued by SEBI regarding the Anti Money Laundering (AML Laws), all intermediaries, including Mutual Funds, have to formulate and implement a client identification programme, verify and maintain the record of identity and address(es) of investors.
To facilitate the KYC process, the mutual fund industry has collectively entrusted the responsibility of collection of documents for KYC, as well as related record keeping, to an independent agency (presently CDSL Ventures Limited) that will act as a central record keeping agency ('Central Agency'). Investors may submit their applications for KYC, along with the requisite documents, at any 'Point of Service' designated by the Central Agency.
To complete the procedure, Investors will have to submit all the requisite documents in original, relating to Proof of Identity and Proof of Address along with a self-attested photocopy of each of them. Alternatively, Investors can also submit True Copies of the requisite documents attested by a Notary Public / Gazetted Officer / Manager of a Scheduled Commercial Bank or Multinational Foreign Banks (Name, Designation and Seal should be affixed on the copy). Kindly note un-attested photocopies of an original document or of notarised copies are not acceptable.
If the above documents including attestation / certifications are in regional language or foreign language then the same has to must be translated into English for submission.
As a token of having accepted the documents for identity and address of the investor(s) and for efficient retrieval of records, the Central Agency will give an acknowledgement letter to each investor who submits an application and the prescribed documents to the Central Agency.
Investors should note that it is mandatory for all applications for subscription of value of Rs.50,000/- and above to quote the KYC Compliance Status of each applicant (guardian in case of minor, including NRI's) in the application for subscription and will also have to submit proof of KYC Compliance viz. KYC acknowledgement letter (or the erstwhile Mutual Fund Identification Number* (MIN) Allotment Letter).
Applicants intending to apply for units through a Power of Attorney (POA) must ensure that the issuer of the POA and the holder of the POA must mention their KYC Compliance Status and attach proof of KYC Compliance at the time of investment above the threshold.
The KYC status will be validated with the records of the Central Agency before allotting units of the scheme of Mirae Asset Mutual Fund, which in turn will not be held responsible and / or liable for rejection of KYC form, if any, by the Central Agency. Further, where it is not possible to verify the KYC compliance status of the investor at the time of allotment of units, the Trustee / AMC shall verify the KYC compliance status of the investor within a reasonable time after the allotment of units.
In the event of non compliance of KYC requirements, the Trustee / AMC reserves the right to freeze the folio of the investor(s) and if necessary and deemed fit affect mandatory redemption of unit holdings of the investors at the applicable NAV, subject to payment of exit load, if any.
Applications for subscriptions of value below Rs.50000/- will have to submit attested copy of PAN card. Attestation can be done by a distributor, a bank manager, or a notary, any of the investor service centres or at any Mirae Asset Mutual Fund office on production of the original copy. Applications without the PAN details will be rejected.
* Valid only where investors who have already obtained the erstwhile Mutual Fund Identification Number (MIN) by submitting the PAN copy as the Proof of Identity.
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