This is with reference to the SEBI Circular “SEBI/HO/MIRSD/DoP/P/CIR/2022/46” dated April 06, 2022, wherein SEBI has advised KRAs to implement new guidelines to validate the records of clients (existing as well as new clients) whose KYC has been completed using Aadhaar as an Officially Valid Document (OVD).The records of those clients who have completed KYC using Non-Aadhaar OVD shall be validated only upon receiving Aadhaar number.
As a part of the validation process, KRAs shall validate the following details:
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Aadhaar through Unique Identification Authority of India (UIDAI) authentication / verification mechanism.
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Mobile number / Email ID using OTP validation (only in cases where mobile number and e-mail ID provided by client are not seeded with Aadhar)
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PAN using Income Tax Database.
As per the information received from the KRAs through RTAs, wherever the Mobile number and Email ID could not be verified, for such clients KYC status against the PAN will be kept ‘ON HOLD’ with effect from August 18, 2023.
Further, as per the confirmation received from RTAs, all new orders received in non-demat mode viz. Fresh / Additional Purchase, NFO, Redemption, Switch and all type of NEW /Existing systematic transactions viz. SIP, SWP & STP, of the clients whose Mobile number and Email ID are not verified, shall be rejected for KYC status ‘ON HOLD’.
Further, as per the communication issued by Central Depository Services (India) Limited, it has been decided that demat accounts of existing clients whose KYC are not found valid by KRA will be suspended by Depositories on September 6, 2023 (Wednesday), considering the updated data made available by KRAs as on September 1, 2023.
Members are hereby requested to take note of the above and take necessary action before placing any type of orders.
Ketan Jantre Zeeta Eustace
Chief General Manager – Mutual Funds Dy. General Manager – Mutual Funds |