SEBI, in a circular on May 14, removed the requirement of linking Permanent Account Number (PAN) with Aadhaar for investors to obtain ‘KYC registered’ status for mutual fund transactions.
SEBI Rules Change: If you also invest money in Mutual Funds, then SEBI has given a big relief for you. Some people were struggling with the problem of registering KYC, they will now be able to do it easily. Because SEBI has removed the rule of linking PAN-Aadhaar. This means that those who were not able to do mutual fund KYC due to lack of PAN-Aadhaar linking, can now do it easily.
Now PAN and Aadhaar will not be required to get KYC done. Now this work can be completed without giving any extra documents. SEBI, in a circular on May 14, removed the requirement of linking Permanent Account Number (PAN) with Aadhaar for investors to obtain ‘KYC registered’ status for mutual fund transactions. However, it should be noted that for KYC valid status one has to link Aadhaar with PAN.
Earlier Aadhaar PAN link was required
In October 2023, SEBI had asked all mutual fund investors to link their PAN with Aadhaar by March 31, 2024. It was said that if the linking is not done, the KYC process will stop, which will stop the investment activities. KYC can also be done using bank passbook or account details as proof of address.
NRI got the biggest relief
NRIs were most affected by SEBI’s directive as they are no longer required to obtain Aadhaar. The regulator requested KYC registered agencies to verify KYC of mutual fund unit holders using PAN, name, address, mobile number and email ID. The goal was to check investor details with official databases like Income Tax (IT) based on PAN and Aadhaar card.
Use this document instead of Aadhaar
SEBI’s revised circular on May 14 said investors can use documents such as passport and driving license to fulfill their KYC requirements. If Aadhaar is not there then any other document can be used in its place.
