Investors get relief on KYC, can continue with SIPs and SWPs

This means such investors can continue with their systematic investment plan (SIP), systematic transfer / withdrawal plan or make redemptions in existing folios. However, these investors would need to undergo a fresh KYC in line with existing norms, if they wish to get onboarded with any new intermediary or make an investment through a new folio in an AMC.

"Such investors who wish to start a new folio would need to do their KYC again, and they will have to submit these physical documents to one of the RTAs," says Viral Bhatt, founder, Money Mantra.

Earlier the markets regulator had specified that investors who had not used an officially valid document, would need to do their KYC again by March 31. Based on this, registrar and transfer agents (RTAs), namely () and sent mails to mutual fund distributors (MFD), of their investors whose KYC is not based on any of the officially valid documents, and who need to do their KYC again before March 31, 2024.

They had mentioned if such investors failed to do their KYC again, they would not be allowed to do any MF transactions be it fresh purchases, redemptions, or from April 1. KYC done by these investors earlier based on documents like bank statements and utility bills will be no longer valid after March 31.