Mutual Fund KYC
The Know Your Customer verification process mandated by SEBI for all mutual fund investors, conducted through SEBI-registered KYC Registration Agencies (KRAs) such as CAMS KRA and KFintech KRA, with PAN as the primary identifier and video KYC as a digital onboarding option.
Mutual fund KYC in India operated through a centralised infrastructure mandated by SEBI to prevent duplication and enable portability of investor identity verification across intermediaries. Once an investor completed KYC with any SEBI-registered KRA, the KYC record was shared across all KRAs in a network model, meaning the investor did not need to redo KYC for each new AMC or distributor engagement.
SEBI designated five KRAs — CAMS KRA, KFintech KRA (erstwhile Karvy KRA), NSE KRA (DotEx), BSE KRA (Central KYC), and CDSL Ventures Limited (CVL KRA). PAN was the central identifier: an investor's PAN was validated against the Income Tax database, and the name, date of birth, and address were captured and stored in the KRA's records. AADHAAR-based e-KYC was introduced for small-ticket investors (initially with an investment cap of ₹50,000 per mutual fund per year), though SEBI subsequently revised these limits based on Supreme Court judgments on AADHAAR use by private entities.
Video KYC (V-KYC) was introduced during the COVID-19 period as a remote alternative to in-person verification (IPV). Under V-KYC, the investor conducted a live video interaction with a KYC officer from the AMC, distributor, or KRA platform, presenting their original PAN card and address proof. The session was recorded, and upon successful verification, the investor was assigned KYC-Verified or KYC-Registered status.
KYC status in India had two levels: KYC Registered (basic level, sufficient for standard mutual fund investments) and KYC Verified (enhanced level, required for investments above ₹50,000 per AMC per year in certain contexts). Status could be checked through the KRA websites using PAN. AMCs were not permitted to process new investments — fresh SIPs, lump sums, or NFO applications — from investors whose KYC was pending or rejected.
Periodic re-KYC was required when there were material changes in an investor's profile, such as change of address, name, or bank account. SEBI's KYC (Know Your Client) norms circulars updated periodically through AMFI specified the documentation and process requirements.