What is KYC (Know Your Customer)?

KYC, or Know Your Customer, is a mandatory process that financial institutions, including mutual funds, must perform to verify the identity of their clients. The primary objective of KYC is to prevent unlawful activities such as money laundering, fraudulent transactions, and terrorist financing.The Securities and Exchange Board of India (SEBI) has defined specific guidelines in line with the Prevention of Money Laundering Act 2002, mandating Financial Institutions and Financial Intermediaries, including Mutual Funds, to conduct thorough customer identification processes.The Mutual Fund KYC process involves collecting information about an investor’s identity and address. This information is then used to conduct due diligence and establish the investor’s identity before they can invest in mutual funds.

KYC Process

The **KYC process** includes the following steps:

1. Identity Verification: Investors must provide proof of identity, such as a valid government-issued photo ID (e.g., passport, driver’s license, PAN card) to establish their identity.
2. Address Verification: Investors need to provide proof of their address, such as a utility bill, bank statement, or Aadhaar card, to confirm their residential address.
3. PAN (Permanent Account Number) Verification: Investors must provide their PAN card details, which is a unique identification number provided by the Indian Income Tax Department. PAN helps in tracking financial transactions and ensures compliance with tax regulations.
4. In-Person Verification (IPV): In some cases, investors may need to undergo an in-person verification process where a representative from the mutual fund or a registrar and transfer agent (RTA) verifies the details provided by the investor in person.
5. Once the investor’s details are verified and authenticated through the KYC process, they are issued a KYC acknowledgement, and they can start investing in mutual funds.

What is CKYC?

CKYC, or Central KYC is an additional step in the KYC (Know Your Customer) process introduced by regulatory authorities in India to streamline and standardize the KYC procedure. It aims to create a centralized repository of KYC records for individuals engaging with various financial entities like banks, mutual funds, insurance companies, etc. In other words, the individual has to undergo the KYC process only once, preventing the need for multiple KYC verifications.Similarly, any updates or modifications to the KYC information can be done through the CKYC system, ensuring the latest data is available for all participating financial entities. Therefore, CKYC simplifies the KYC process for individuals. Also, it enhances efficiency, transparency, and security in the financial sector by promoting a centralized and standardized approach to customer identification and verification.

How to do your KYC?

You can do your KYC either online or offline method –

Online

• Visit the website of the KYC Registration Agency like NDML, CAMS, Karvy or NSE.
• Fill the KYC registration form
• Upload the required documents like ID proof, address proof and photograph
• Submit and verify the information provided
• Some KRAs require in-person verification (IPV) through a video call
• Upon successful verification, you will receive the confirmation of KYC completion.

Offline

• Visit the respective financial institution (AMC, bank, etc) or KRA for the KYC completion process
• Collect and fill the KYC application form
• Attach a self-attested copy of the required documents like ID proof, address proof and photograph.
• Submit the application with documents at the branch/office
• Complete the in-person verification (IPV) if required
• Upon successful verification, you will receive the confirmation of KYC completion

At Sigfyn, we also help you complete your KYC process, i.e., you can register a new KYC or modify the existing KYC information. Our team will assist you to complete the KYC process online.

How to Check KYC Status?

Here are the steps to verify your KYC status online:

• Begin by visiting the CVLKRA website.
• Input your PAN number and the displayed captcha code, then click on ‘submit’.
• The KYC status will be displayed on the screen.

Similarly, after you login at **Sigfyn** and enter your PAN details for your account verification, we will automatically verify your KYC status whether it is completed or not. If it completed, you can proceed with your investment process. If not completed, we help you complete the KYC process online within few minutes.