Starting Feb 1, 2008, SEBI (Securities and Exchange Board of India), the stock market regulator and AMFI (Association of Mutual Funds of India) introduced new “Know Your Customer” rules for mutual fund investors investing Rs.50,000 or more. You can read the details here, but here is the summary:

If you are investing either a lumpsum of Rs.50,000 or more, or starting a SIP (Systematic Investment Plan) where each installment is Rs.50,000 or more, then you have to first complete the new KYC formalities.

Here is what you need to do: Take a few documents (originals and copy, or attested copy) to any Point of Sale branch of CDSL Ventures Ltd. (CVL), a wholly owned subsidiary of Central Depository Services (India) Ltd. (CDSL)). AMFI and SEBI have contracted out the verification process to CVL. You need to take the following:

- Proof of Identity

- Proof of Address

- PAN Card

- Photograph

Once you submit these documents and this application form, you will get an acknowledgment from CVL, after verification. All this is a one time effort. After you get the acknowledgment, just submit a copy of it with any new mutual fund investment you make subsequently. This is valid for all mutual funds.

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