Mutual Funds News: No More Accounts on Hold, SEBI Allows KYC Verification Via Official Documents

Mutual Fund News: Since April 1, SEBI has tightened the KYC rules for mutual funds, requiring investors to validate their KYC using Aadhaar. As a result, many investors had to redo their KYC, and those without validated accounts were unable to withdraw their funds because their accounts were placed on hold. SEBI has simplified these rules. 

Mutual Fund KYC Rules

KYC registration agencies can now use official databases to verify details such as PAN, name, address, email, and mobile number. If the information matches, it will be deemed valid. This change is expected to benefit more than ten million investors. Previously, approximately 13 million mutual fund accounts were held due to incomplete KYC, causing problems for many investors, particularly NRIs. The new rules will allow the hold on accounts to be lifted once KYC has been verified.