From Feb 1, 2017, new investors in mutual funds will have to do CYKC (Central Know Your Customer) before investing. The CKYC will replace the existing KYC.
What is CKYC?
Central KYC Registry, or CKYCR, will re place the existing multiple KYC submission processes one needs to go through for various financial transactions, such as opening bank accounts, buying life insurance, and investing in mutual funds. The government has authorised the Central Registry of Securitisation and Asset Reconstruction and Security Interest of India (CERSAI) to manage the CKYC Registry process.
Why has CKYC been undertaken?
CKYC has been undertaken to move investors to a single KYC platform.
What does a first-time investor in mutual funds have to do?
Along with the CKYC form, photocopies of documents have to be physically verified and attested, and an in-person verification of the investor has to be done. CKYC can be done through a mutual fund distributor, or the investor will have to visit the office of a mutual fund or a registrar. In case of NRI applicants, a person is authorised to attest the documents, and he may also conduct the in-person verification and confirm this in the KYC form ..
As of now, existing investors in mutual funds who are KYC compliant can continue investing in mutual funds. No updation is required from their end.