KYC stands for Know Your Client or Know Your Customer
As per the regulatory requirements prescribed by SEBI (Indian Financial Institution regulator), every financial institution needs to ensure that they know their client and perform the necessary client identification procedures. KYC processes are now considered globally important in the wake of financial crimes, fraud, money laundering and terrorist financing activities.
To make it simpler, KYC norms target to verify the identity of applicant and their address. Along with these details, further client specific details are obtained such as marital status, earning capacity, political contacts, occupation, etc.
From 1st January 2011, it has become mandatory for all mutual fund investors in India to be KYC compliant. This is a one time process and involves the following steps:
- An investor needs to fill the specified KYC form. The form can either be obtained from any mutual fund office, distributors or can be freely downloaded from our download section. Click here to download the KYC form;