01 Feb 2008
Know Your Customer (KYC) requirement under Prevention of Money Laundering Act, 2002
Check KYC status with CVL
Prevention of Money Laundering Act, 2002 (PMLA) came into effect from July 1, 2005 and consequently SEBI mandated that all intermediaries (which includes Mutual Funds) should formulate and implement a proper policy framework as per the guidelines on anti money laundering measures and also adopt a Know Your Customer (KYC) Policy. Your attention is drawn to the addenda dated August 31, 2006 and December 29, 2006 issued by HDFC Mutual Fund (Mutual Fund) / HDFC Asset Management Company Limited (AMC) on PMLA. In view of this, presently each investor (including joint Unitholders) who wishes to invest an amount of Rs. 50,000 or more need to be KYC compliant as required by law. The Mutual Fund / AMC reserves the right to prescribe a lower threshold subscription amount for customer identification.
Procedure for KYC compliance
Investors (both individuals and non individuals) intending to invest Rs. 50,000 or more must meet certain mandatory requirements in terms of establishing their proper identity and address. Applicants (including new / existing Unitholders) will have to submit the following documents :
- KYC Application Form duly completed by each applicant including joint Unitholders
- Documents evidencing Proof of Identity and Proof of Address *
* List of requisite KYC documents for individuals and non-individuals is mentioned in the KYC Application Form. [Please note that the KYC Application Form and overleaf instructions should be printed on the same page (back to back)]
These documents can be submitted at a few of our Investor Service Centres (ISCs) or designated "Points of Services" (PoS). Upon receipt and verification of the above documents, a KYC acknowledgement will be issued to each applicant. Investor(s) must note that KYC compliance is mandatory at the time of submission of each subscription request with the designated Official Points of Services. The KYC acknowledgement is presently being issued free of cost.
Important points to note for Investors :
- Investors not meeting our complete KYC requirements will not be able to invest with HDFC Mutual Fund.
- Incomplete / insufficient and illegible documents are liable to be rejected.
- In the event of any KYC Application Form being subsequently rejected for lack of information / deficiency / insufficiency of mandatory documentation, the investment transaction will be cancelled and the amount will be mandatorily redeemed at applicable NAV, subject to payment of exit load, wherever applicable. (In case of an ELSS Scheme or a New Fund Offer, the original amount invested will be refunded). Such refunds will be despatched within a maximum period of 21 days from date of allotment of units. In respect of New Fund Offer the refunds will be despatched within a maximum period of 6 weeks from the closure of New Fund Offer.
Click on the following links to download a KYC form. You can also request for a KYC form to be sent to you, here
To know more about KYC, kindly go through the FAQs.
|