Tata Mutual Fund has launched ‘contact-less on-boarding’ for first-time mutual fund investors. This process makes the account opening experience paper-less. It empowers the investor to open an account without waiting for anyone to show up at the door.
The guidelines issued by the Securities and Exchange Board of India under The Prevention of Money Laundering Act, 2002 (“PMLA”) requires Mutual Funds to follow know your client (KYC) norms. KYC is an acronym for “Know your Client”, a term commonly used for Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to ‘know’ their clients. This would be in the form of verification of identity and address, financial status, occupation and such other personal information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.
MVS Murthy, Head Marketing & Digital at Tata Asset Management, says, “Our contact-less on-boarding, will empower first-time investors to kick-start their investing journey without the need for any physical meeting for document collection. This will benefit all channel partners and acquisition channels by reducing their paperwork and associated leg work. With the proliferation of mobiles, access to data and the trust our brand enjoys, e-KYC is the smoothest way to come on-board a strong and growing industry.”
KYC is one-time exercise while dealing in securities markets-once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc), Investors need not undergo the same process again when they approach another intermediary.