New Delhi:
The SEBI, which regulates the market, has made a new rule. People who invest in mutual funds must complete a process called KYC.
This process makes sure the investment is legal and safe. The deadline for this was March 31, but now it’s changed.
Investors won’t lose access to their accounts if they missed the deadline.
Changes from April 1st
SEBI changed the rules for KYC documents starting from April 1st, 2024. Now, only certain documents are accepted for KYC.
Some documents like bank statements or utility bills that were accepted before are not valid anymore.
Accepted Documents
Below are accepted documents:
- Aadhar card
- Passport
- Driving license
- Voter ID card
- NREGA job card
Other documents approved by the government is also accepted.
Not accepted documents are
1) Bank statements
2) Utility bills
What investors need to do
SEBI told people who sell mutual funds that they can’t accept bank statements or utility bills for KYC anymore.
Investors need to fill out a KYC form and submit identity and address proof documents.
Previous relief
Before, there was a rule that said if investors didn’t finish KYC by March 31, their accounts would be blocked.
But now, investors have more time. Even if they miss the deadline, they can still use their accounts. However, they need to finish KYC to fully use their accounts again.
