Investor Services

Investor Services

• Definition: Investor services refer to the various processes and services provided by mutual funds to their investors, aiming to provide a uniform experience and comfort to investors.
• Details: These services include the New Fund Offer (NFO) process, investment plans and options, allotment of mutual fund units, statement of account, and other operational aspects.

Key Concepts

• New Fund Offer (NFO): A process where units in a mutual fund scheme are offered to investors for the first time.
• NFO Price: The price per unit that investors pay to invest during the NFO.
• Ongoing Price: The price at which investors purchase or receive redemptions/switch-outs.
• Investment Plans: Mutual funds offer various investment plans, including:
  • Direct Plan: A plan where investors purchase units directly from the fund, with a lower expense ratio.
  • Regular Plan: A plan where investors purchase units through a distributor, with a higher expense ratio.
• Income Distribution cum capital withdrawal (Dividend) Options: Mutual funds offer three options:
  • Pay-out Option: Investors receive dividends in their bank account.
  • Re-investment Option: Dividends are re-invested in the same scheme, and additional units are allotted to the investor.
  • Growth Option: No dividend is declared, and the NAV captures the full value of the portfolio gains.

Investment Options

• Dividend Received: Investors in the pay-out and re-investment options receive dividends.
• Tax on Dividend: Dividends are taxed in the hands of the investor.
• Increase in Units: Re-investment option leads to an increase in the number of units held by the investor.
• NAV Change: NAV declines to the extent of the dividend in the pay-out and re-investment options, while the growth option captures the portfolio changes entirely.

Investor Services (Part 2)

• Dividend Reinvestment: When a dividend is declared, the amount due to the investor can be reinvested in the scheme at the ex-dividend NAV. For example, if the NAV is Rs.12 and the dividend is Re1, the ex-dividend NAV would be Rs.11.
• Additional Units: The number of additional units received by the investor due to dividend reinvestment can be calculated by dividing the dividend amount by the ex-dividend NAV. For instance, Rs.100/Rs.11 = 9.09 additional units.
• Value of Investment and Return: The value of the investment and return earned by each investor can be calculated on the ex-dividend date. This includes capital gains from the appreciation in NAV and dividend earned.
• Post-Tax Returns: The post-tax returns to each investor will be different due to varying tax rates on dividend and capital gains.

Allotment of Units

• New Fund Offer (NFO): Units are sold at the face value (Rs.10) during an NFO. The investment amount divided by the face value gives the number of units bought.
• Ongoing Offer: The sale price is the applicable NAV. The investment amount divided by the NAV gives the number of units bought.
• Rights Issue: The price at which units are offered is clear at the time of investment. The investment amount divided by the rights price gives the number of units bought.
• Bonus Issue: New units are allotted for free, increasing the total number of units held by the investor. The NAV is reduced proportionately, and the value of the investor's holding remains unchanged.

Account Statements

• Monthly Statement of Account: Issued every month if there is a transaction, showing the value of transactions, NAV, and number of units transacted.
• Annual Account Statement: Provided to unit-holders who have not transacted in the last six months, reflecting the latest closing balance and value of units.
• Consolidated Account Statement: Issued monthly or half-yearly, detailing all transactions and holdings across all schemes of all mutual funds.

Mutual Fund Investors

• Eligibility to Invest: Various categories of people and entities are eligible to invest, including:
  • Individual Investors: Resident Indian adults, minors, Hindu Undivided Families (HUFs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs).
  • Non-Individual Investors: Companies, registered societies, trusts, partnership firms, banks, and other financial institutions.
• Sources of Information on Eligibility: The Scheme Information Document (SID) provides details on who can invest in a particular scheme.

Investor Services

• Introduction to Application Form: The application form for mutual funds requires various details, including the type of plan (Direct or Regular), unit holder information, and bank account details.
• Direct Plan and Regular Plan:
  • Direct Plan: Investors can invest directly without a distributor by mentioning "Direct" in the application form.
  • Regular Plan: Investments routed through a distributor require the ARN/RIA number and other details.
• Unit Holder Information:
  • A mutual fund investment can have up to three holders, with the first holder being the primary investor.
  • The application form requires the name, nationality, identity proof, KYC compliance, signatures, address, and communication details of all holders.
• Minor as a Unit Holder:
  • Investments for minors are made through a guardian who complies with KYC and PAN requirements.
  • The guardian's documents, such as a notarized photocopy of the court order, must be provided.
  • On attaining maturity, the minor's information replaces the guardian's, and the account is updated with the minor's KYC, PAN, and bank account details.
• POA as a Unit Holder:
  • A Power of Attorney (POA) holder and issuer must comply with KYC and PAN requirements.
  • A certified copy of the PoA must be submitted to the mutual fund.
  • The PoA holder can conduct transactions, except making or changing nominations.
• Status of the Holder and Mode of Holding:
  • The status of the first holder (individual or non-individual) and mode of holding (single, joint, or either or survivor) must be provided.
  • The selection can be altered at any point, but once a joint account is created, joint holders cannot be changed or deleted, except in the event of death.
• KYC Details:
  • The KYC acknowledgement letter must accompany the application form.
  • Additional KYC details, such as occupation, gross annual income, and net worth, are mandatorily collected.
• FATCA and CRS Details:
  • Applicants with a country of birth, citizenship, or nationality other than India must provide additional information under FATCA and CRS.
  • The required information includes place of birth, country of citizenship, and tax residency.
• Bank Account Details:
  • The bank account details of the first holder must be provided, including the name of the bank, branch, account number, and IFSC code.
  • The bank account details must match the details linked to the demat account, if applicable.
• Investment Details:
  • Investors must choose their scheme, plan, option, and pay-out option at the time of application.
  • Each scheme typically offers a regular plan, direct plan, growth option, and income distribution cum capital withdrawal option.
• Payment Details:
  • The payment instrument details, such as the bank account through which the payment is made, must be mentioned in the application form.
  • The payment must be made to the account specified by the mutual fund.
• Unit Holding Option:
  • Investors can hold units in physical or demat mode.
  • For demat mode, the details of the beneficiary account, name, and ID of the depository participant must be provided.
• Nomination:
  • The applicant can make a nomination in favor of one or more nominees.
  • The nomination can be made at the time of application or subsequently.
• Minimum Investment:
  • The Scheme Information Document (SID) and Key Information Memorandum (KIM) provide information on the minimum application amount.
  • The investor must confirm that the investment meets the minimum investment limit set by the mutual fund.

Investor Services

• Definition: Investor services refer to the various facilities and processes provided by mutual funds to their investors, including application forms, transaction slips, and payment mechanisms.
• Details: Investor services are designed to make it easy for investors to invest in mutual funds, track their investments, and redeem their units.

Application Form and Transaction Slip

• Application Form: The application form is used to create an investor record or folio with a mutual fund. It requires personal and bank account details, and is used for initial investments.
• Transaction Slip: A transaction slip is used for additional purchases or repurchases of units in an existing folio. It requires the folio number, scheme details, and payment information.

Repurchase of Units

• Repurchase: Investors can offer their units for repurchase to the mutual fund using a transaction slip. The repurchase price is the applicable NAV (Net Asset Value) less Exit Load.
• Repurchase Amount or Units: Investors can specify the repurchase amount or number of units, and the mutual fund will calculate the corresponding number of units or amount.

Switch

• Switch: A switch is a redemption from one scheme and a purchase into another scheme combined into one transaction.

Payment Mechanism

• Approved Modes: Payments for mutual fund purchases must be made through approved banking channels, including online transactions, cheques, demand drafts, and cash.
• Online Transactions: Investors can conduct online transactions using a username and password, and make payments through internet banking or digital payment mediums.

Digital Payment Mediums

• Internet Banking: Internet banking allows investors to access banking services online and make fund transfers, bill payments, and other transactions.
• Digital Payment Options: Other digital payment options include NEFT (National Electronic Fund Transfer), IMPS (Immediate Payment Service), RTGS (Real Time Gross Settlement), and SWIFT transfers.
• UPI (Unified Payment Interface): UPI allows fund transfers between accounts through a mobile app, using a Virtual Payment Address (VPA).
• ASBA (Application Supported by Blocked Amount): ASBA is a facility where the investment application is accompanied by an authorization to block the application money in the investor's bank account.
• AEPS (Aadhaar Enabled Payment Service): AEPS allows bank-to-bank transactions using the Aadhaar number, which must be linked to the bank account.

Investor Services

• Aadhaar Enabled Payment System (AEPS): AEPS uses the fingerprint of an individual as a password to authorize transactions, making it a secure mode of fund transfer.
• National Unified USSD Platform (NUUP): NUUP allows mobile banking transactions without a smartphone or internet, using the *99# code, and supports transactions like payments, balance checks, and fund transfers in 11 regional languages.
• Cards:
  • Debit Cards: Issued by banks, linked to bank accounts, and require a PIN for transactions.
  • Credit Cards: Issued by banks and other entities, allow transactions up to approved credit limits, and may charge merchants for each transaction.
  • Prepaid Cards: Can be used for card payments, but have limitations.
• E-Wallets:
  • Definition: A virtual or digital version of a physical wallet, loaded with money for payments and transfers.
  • Restrictions: Cannot transfer money to a bank account, and have a limit of Rs. 50,000 per investor per financial year for mutual fund investments.
  • Regulations: Must follow KYC norms, and only amounts loaded through cash, debit card, or net banking can be used for mutual fund subscriptions.
• Digital Payments:
  • Modes: Net banking, debit cards, UPI, and other digital modes are accepted for mutual fund payments.
  • One-Time Mandate (OTM): A facility that authorizes banks to process debits for mutual fund purchases, eliminating the need for repeated payment initiations.
• Other Payment Mechanisms:
  • Cheque/Demand Draft: Physical payment instruments that require precautions to prevent misuse, such as mentioning the investor's name and PAN number.
  • Third-Party Payments: Generally not accepted, except in special cases like payments by parents/grandparents for minors, or employer-employee transactions.
  • Cash Payments: Allowed for small investors up to Rs. 50,000 per investor per mutual fund per financial year, subject to compliance with AML rules and regulations.

Investor Services

• Investment Process: The investment process involves submitting the application form and deposit slip along with cash at designated bank branches. The acknowledgement copy of the bank slip and application form must be submitted to the Investor Service Centre (ISC) for timestamping.
• Payment Mechanism: Repayment of investments can only be made through the banking channel. The pay-out bank details must be provided in the application form. Payment modes not accepted include Stock-invests, Postal orders, Money orders, Cash (except for small investors), Outstation cheques, and Post-dated cheques (except for systematic investments).
• Electronic Payment Modes: Asset Management Companies (AMCs) may use electronic payment modes such as RTGS, NEFT, IMPS, and Direct Credit for payments, including refunds to unitholders.
• Redemption Proceeds: Investors can receive redemption proceeds through Cheque or Electronic Modes such as Direct Credit, RTGS, NEFT, and NACH. Electronic modes are faster and require details such as account number, branch address, and IFSC/MICR code.
• Multiple Bank Accounts: Investors can register multiple bank accounts to receive redemption, dividends, and other payouts. An individual investor can register up to 5 bank accounts, and a non-individual investor can register up to 10 bank accounts.
• Instant Access Facility (IAF): IAF allows for the credit of redemption proceeds to the investor's bank account on the same day of the redemption request, with a monetary limit of Rs. 50,000 or 90% of the latest value of the investment, whichever is lower.
• Cut-off Time and Time Stamping: The Securities and Exchange Board of India (SEBI) has prescribed cut-off timings to determine the applicable Net Asset Value (NAV) for fairness to investors. The cut-off time and applicable NAV vary depending on the type of scheme and transaction.
• Applicable NAV: The applicable NAV is determined based on the cut-off time and the availability of funds for utilization. For example, for equity-oriented funds and debt funds (except liquid and overnight funds), the applicable NAV is the closing NAV of the day on which the funds are available for utilization, irrespective of the time of receipt of the application.

Investor Services (Part 7)

• Cut-off Time: The time by which an application must be received to be eligible for a particular Net Asset Value (NAV).
• NAV Applicability:
  • For applications received up to the cut-off time, the lower of: (a) NAV of previous calendar day and (b) NAV of calendar day on which application is received.
  • For redemption requests received through Instant Access Facility (IAF) after the cut-off time, the lower of: (a) NAV of calendar day on which such application is received and (b) NAV of next calendar day.
• Transaction Types:
  • Overnight Funds:
    • Redemptions and switch outs: Applications received up to 3:00 PM, Closing NAV of the day immediately preceding the next business day will apply.
    • Applications received after 3:00 PM: Closing NAV of the next business day will apply.
    • Online applications: Cut-off timing extended to 7:00 PM for overnight fund schemes.
  • Other Schemes: Cut-off timing and NAV applicability may vary.
• Time Stamping:
  • Official Points of Acceptance (OPoAs): Designated locations where applications are time-stamped.
  • Time-stamping Machines: Tamper-proof machines used to record the time of application receipt.
  • Online Transactions: Time as per the web server is used to determine the NAV for sale/re-purchase transactions.
• KYC Requirements:
  • Know Your Customer (KYC): Mandatory for all investors, including individual and non-individual, joint holders, NRIs, PoA holders, and guardians of minors.
  • KYC Documents:
    • Proof of Identity: PAN Card (except for exempt categories), Aadhaar Card, Passport, Voter’s ID, Driving License, or other photo-identity cards.
    • Proof of Address: Passport, Voter’s ID, Ration Card, Driving License, Bank Account Statement, Utility Bill, or other specified documents.
  • KYC Exemptions: Certain categories of investors are exempt from providing PAN, such as investments up to Rs. 50,000 per mutual fund per financial year.
  • PAN Exempt Investments: Micro-SIPs (SIPs with annual investment not exceeding Rs. 50,000) and small investors investing up to Rs. 50,000 per mutual fund per financial year are exempt from providing PAN.

Investor Services (Part 8)

• Valid Photo Identification Documents: The following documents are accepted as valid photo identification for KYC purposes:
  • Photo Identification issued by Bank Managers of Scheduled Commercial Banks / Gazetted Officer/Elected Representatives to the Legislative Assembly / Parliament
  • ID card issued to employees of Scheduled Commercial / State / District Co-operative Banks
  • Senior Citizen / Freedom Fighter ID card issued by Government
  • Cards issued by Universities/deemed Universities or institutes under statutes like Institute of Chartered Accountants of India, Institute of Cost Accountants of India and Institute of Company Secretaries of India
  • Permanent Retirement Account Number (PRAN) card issued to National Pension System (NPS) subscribers by CRA (NSDL)
  • Any other photo ID card issued by Central Government / State Governments / Municipal authorities / Government organizations like ESIC / EPFO
• Document Validation: The document must be current and valid, and the copy shall be self-attested by the investor/attested by the ARN holder mentioning the AMFI Registration Number (ARN)

KYC Registration Agencies

• Centralised KYC Process: SEBI has instituted a centralised KYC process for the capital market, including mutual funds, which allows investors to invest across the capital market after completing the KYC process with one capital market intermediary
• KYC Registration Agencies (KRAs): KRAs facilitate the centralised KYC process, and once an investor's data is uploaded to a KRA's database, the KYC is valid across the capital market
• In-Person Verification (IPV): An IPV of the investor is mandatory, and the name, designation, and organisation of the person conducting the IPV must be recorded on the KYC form

KYC through e-KYC Service of UIDAI

• e-KYC Service: The e-KYC service launched by UIDAI is accepted as a valid process for KYC verification, and the information made available from UIDAI is treated as sufficient proof of identity and address
• Aadhaar Authentication: Entities in the securities market can undertake Aadhaar authentication under section 11A of the PMLA, and SEBI registered intermediaries/mutual fund distributors can undertake Aadhaar authentication of their clients for KYC purposes

KYC Process

• KYC Form: The requisite form must be filled-in along with supporting documents, and the supporting documents are verified with the original documents
• In-Person Verification (IPV): An IPV of the investor is mandatory, and the name, designation, and organisation of the person conducting the IPV must be recorded on the KYC form
• Online KYC: SEBI has enabled online KYC, and investors can complete the KYC process online without physically visiting the office of the intermediary
• Digital KYC: The digital KYC process is accessible to persons with disabilities, and FAQ on account opening by persons with disabilities is available on the SEBI website

Additional Requirements

• KYC for Minors: Where an investment is made by a minor, KYC requirements must be complied with by the Guardian, and proof of age of the minor must be provided
• KYC for Power of Attorney Holder: In the case of investments by a Power of Attorney (PoA) holder on behalf of an investor, KYC requirements must be complied with by both the investor and the PoA holder
• KYC for NRIs: For NRI investors, PAN is the sole identification number for KYC compliance, and a copy of the passport/PIO card/OCI card and overseas address proof is mandatory
• KYC for Institutional Investors: Institutional investors must provide additional documents, including eligibility for the investing institution to invest, and authorised individuals must invest on behalf of the institution

Investor Services (Part 9)

• Institutional Investor Requirements: To invest under the laws of the country, but the company’s own incorporation documents (Memorandum of Association and Articles of Association or Trust Deed) may not have provided for such investments.
• Authorisation: Required for the investing institution to invest, typically in the form of a Board Resolution, and for the official to sign the documents on behalf of the investing institution.
• SEBI Mandate: Investor other than individuals have to provide details of the Ultimate Beneficial Owner (UBO) of the investments and submit documents to establish their identity of such UBOs through any of the identity proofs acceptable under the KYC norms.
• UBO Requirements: Not applicable to listed companies or subsidiaries of the same.
• Client Due Diligence (CDD) Process: All categories of investors of SEBI registered intermediaries, which includes mutual funds, except individual investors and a company that is listed on a stock exchange or is a majority owned subsidiary of such a company is required to provide the information to establish and verify the identity of the persons who beneficially own or control the securities account.
• Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS): Financial institutions, including mutual funds, are required to undertake a due diligence process to identify foreign reportable accounts and collect such information as required under the said provisions and report the same to the US Internal Revenue Service/any other foreign government or to the Indian Tax Authorities for onward transmission to the concerned foreign authorities.

Systematic Transactions

• Systematic Investment Plan (SIP): An approach where the investor invests constant amounts at regular intervals, averaging the unitholder's cost of acquisition.
• Systematic Withdrawal Plan (SWP): Allows investors to withdraw a constant value of units over a period of time, reducing the risk of redeeming all units in a market trough.
• Systematic Transfer Plan (STP): A variation of SWP, where the amount withdrawn from a scheme is re-invested in another scheme of the same mutual fund.
• Switch: A redemption from one scheme and a purchase into another combined into one transaction.

Key Concepts

• Rupee Cost Averaging: A benefit of SIP, where the investor acquires units at lower than the average of the NAV on the transaction dates.
• Exit Loads: Apply to redemption transactions, including SWP and STP, reducing the effective price for the investor.
• Tax Implications: Apply to redemption transactions, including SWP and STP, and may vary depending on the type of scheme and investment.

Investor Services (Part 10)

• Transfer of Income Distribution Cum Capital Withdrawal Plan (Dividend Transfer Plan): This facility allows investors to transfer dividends earned from one mutual fund scheme to another scheme of the same mutual fund, enabling diversification and risk management.
• Key Features:
  • Investors must hold units in the income distribution cum capital withdrawal (dividend) option of a scheme to sign up for this facility.
  • The investor must specify the source scheme, plan, and option from which the transfer is to be made and the target scheme, plan, and option to which the dividend should be transferred.
  • The minimum application amount for the target scheme does not apply to investments made under a dividend transfer plan.
• Systematic Transactions: Mutual funds offer various systematic transaction facilities, including:
  • Systematic Investment Plan (SIP): Allows investors to invest a fixed amount at regular intervals.
  • Systematic Withdrawal Plan (SWP): Enables investors to withdraw a fixed amount at regular intervals.
  • Systematic Transfer Plan (STP): Allows investors to transfer a fixed amount from one scheme to another at regular intervals.
• SIP Top-Up Facility: Investors can increase their SIP amount at intervals chosen by them, either by a fixed amount or a percentage of the existing SIP amount.
• Registration and Cancellation of Systematic Transactions: Investors can register for systematic transactions by submitting the required forms and can cancel them by giving notice to the mutual fund.
• Execution of Systematic Transactions: Each tranche of a systematic transaction is executed at the applicable NAV on the date of the transaction, and the investor bears the loads and taxes as applicable.
• Triggers: Some mutual funds offer trigger options, which allow investors to specify conditions for buying or selling units, such as a particular market level or date.

Investor Services (Part 11)

• Trigger Facility: A facility that allows investors to set a trigger to redeem or transfer money into an equity scheme when the market or NAV falls by a defined percentage.
• Types of Triggers: Triggers can be set on the value of indices or the investment, and investors can choose to redeem just the appreciation or the entire holding value on activation.
• Trigger Facility Request: A separate trigger facility request has to be made for each investment under a folio, and a notice period may be specified by the mutual fund for registering and cancelling a trigger facility.

Non-Financial Transactions in Mutual Funds

• Nomination: A facility that allows investors to specify a nominee to receive the units in the event of the investor's demise.
• Nominee Details: The nomination can be made in favour of one or more nominees, and the percentages of holding for each nominee must be defined.
• Change in Nomination: A nomination can be changed or cancelled at any time, and the change or cancellation has to be made by all the unitholders who made the original nomination.

Pledge/Lien of Units

• Pledge Form: A form executed by the unit-holder to pledge units as security for a loan.
• Lien Marking: The units offered as security must have completed the lock-in period, and all unit-holders must sign the form requesting the marking of the lien.
• Pledge Release: The pledge is released when the unit-holder repays the loan, and the units can be sold or switched out after the pledgee gives a written no-objection.

Demat Account

• Dematerialisation: A process that converts physical holdings into digital records.
• Demat Account Benefits: Less paperwork, direct credit of bonus and rights units, and consolidated investment holdings.
• Demat Account Opening: Investors can open a demat account with a depository participant and dematerialize their investment holdings.

Change in Folio Details

• Personal Information Update: Investors must update their personal information, such as name, address, and status, in the folio records.
• Update Procedure: The update procedure involves submitting a request to the mutual fund or depository participant, and the changes will be reflected in the folio records.

Investor Services

• Definition: Investor services refer to the various facilities and processes provided by mutual funds to their investors, including change in personal information, change in bank account details, transmission of units, and change in status of special investor categories.
• Details: These services are designed to ensure that investors can manage their investments efficiently and effectively.

Change in Personal Information

• Process: The KYC Registration Agency (KRA) prescribes a change form to be used to register changes in information provided at the time of the Know Your Customer (KYC) process.
• Required Documents: The change form requires the individual to provide their name, date of birth, PAN or PERN, and Aadhaar number, as well as a self-attested copy of the PAN and supporting documents for the change.

Change in Bank Account Details

• Process: A change in bank account details has to be directly registered with each mutual fund, and investors can register up to five bank accounts with a mutual fund for individual investors and 10 for non-individuals.
• Required Documents: The form for registering the change should be accompanied by a cancelled cheque of the said account with the name of the first holder of the mutual fund folio pre-printed on it, or a bank statement, passbook, or bank certificate that gives the name, account number, and address.

Transmission of Units

• Definition: Transmission is the process of transferring units to the person entitled to receive them in the event of the death of the unitholder.
• Process: The mutual fund will insist on the KYC documentation from the nominee, the death certificate of the deceased unit-holder, and an indemnity against future problems for the mutual fund arising out of the transfer.

Change in Status of Special Investor Categories

• Categories: Minors, NRIs, HUFs investing through a constituted attorney constitute a special category of individual investors.
• Process: These categories of individual investors require additional documentation and process, due to their differential status with respect to taxation and mode of operation of investments or restrictions on certain components of investment activity.

Minor Turned Major

• Process: When a minor becomes a major, they have to complete the KYC process, provide updated bank account details, and change their status in their existing bank account from minor to major.
• Required Documents: The prescribed MAM form, copy of PAN Card, KYC Acknowledgment, cancelled cheque leaf, signature attestation by the bankers, nomination form, and a fresh SIP, STP, SWP mandate are required.

NRI to Resident Indian

• Process: If a person returns to India and forgoes the NRI status, they need to carry out certain changes in their investment accounts, including updating their KYC details and changing their bank account details.
• Required Documents: The required documents for this change include a copy of the passport, visa, and proof of address in India.

Investor Services

• Bank Account: When an NRI becomes a resident Indian, they cannot operate their NRO/NRE/FCNR (B) accounts and need to open a Resident Rupee Account. They must inform the bank about the change of status and submit required documents such as address proof, identity proof, and photographs.
• Demat Account: The returning NRI must inform the designated authorised dealer branch and the DP about the change of status. A new demat account with 'Resident' status needs to be opened, and all balances from the NRI demat account will be transferred to the new account.
• Mutual Fund Investments: The NRI needs to inform the relevant AMCs about the change of status, address, and bank details. A KYC change form must be submitted to the KYC registration agency, and an acknowledgement will be issued.

Change in Karta of HUF

• For a change in 'Karta' of a HUF, a letter is required from the new Karta stating the reason for the change.
• The letter must be signed by the new Karta and include details such as the name of the deceased Karta, folio number, scheme, and unit details.
• KYC documents of the new Karta and the HUF must be provided, along with an attested copy of the death certificate, bank certificate, and indemnity bond.

Investor Transactions – Turnaround Times

• SEBI's guidelines prescribe turnaround times for investors' transactions with mutual funds, including NAV calculation and disclosure, subscription period, allotment and refund of money, and scheme-wise annual reports.

Unclaimed Assets

• SEBI has implemented measures to minimize the creation of unclaimed assets in the securities market, including stipulating norms for inactive accounts and folios, mandating contact and bank details, and simplifying transmission norms.
• The Mutual Fund Investment Tracing and Retrieval Assistant (MITRA) platform has been developed to help investors trace inactive and unclaimed mutual fund folios.
• DigiLocker can also be used to reduce unidentified unclaimed assets by providing a digital document wallet for citizens to store documents such as Aadhar, PAN, and death certificates.