MUTUALFUND IDENTIFICATION NUMBER (MIN)
PAN-like number to be must for MF investors
BS Reporter in Mumbai | December 28, 2006 10:08 IST
Top Emailed Features
• Earn millions through franchising
• Warning! Read home loan documents well
• How to get rich by tax planning
Tell us
• Ask a question
Find more about�
• Buy out Businesses
• Invest here
• Auto Loans
Come 2007, individuals as well as corporates investing Rs 50,000 and more in single mutual fund scheme would be required to apply for mutual fund investors number, as prescribed by the know your client norms of the Securities and Exchanges Board of India.
In an announcement made in Mumbai on Wednesday, Association of Mutual Funds in India chairman A P Kurian said investors who wished to invest more than Rs 50,000 in any single mutual fund scheme in one installment would have to provide original or attested true copies of photograph, proof of identity, address proof and PAN card, on verification of which MIN would be allotted.
"Investors have to provide KYC documents and information only once to obtain the MIN, quoting which they could invest in the schemes of all mutual funds without necessity to submit the KYC documents every time they invest. Amfi came into picture to initiate this purpose, where investor would get this identification number without witnessing any hassles," Kurian said.
CDSL Ventures, a Central Depository Services subsidiary, has been given the task of document verification, MIN allocation and data preservation.
Fund houses, which earlier came out with proposals to set up their own infrastrucutre for this purpose, will now be sharing the cost of MIN allocation, as the subscriber would not be bearing the cost.
"In the initial stages, AMCs would be paying for the MIN allocation. We expect to allocate around 8-10 lakh MINs by first six months of 2008," Cyrus Khambata, chief executive officer, CVL, said.
However, as per the present guidelines, investments over Rs 50,000, done prior to December 31 this year, would not require this identification.
In another case, if an investor puts is an amount, which is slightly lower than this limit into different schemes instead of one, he would also be not required to apply for the MIN.
Asked about this, Kurian said, "To begin with, we are introducing this limit, which matches the PAN card eligibility criteria. As and when we would fulfill the targets, we could lower this and widen the scope of this identifying more investors." He also clarified that the limit would be same for retail as well as institutional investors.
Amfi, along with MFs, would be making the MIN forms available at various branches of AMCs, registrars and selected banks where the investor could avail the MIN immediately on submission and verification of the documents.
The application form would also be available on Amfi website as well as websites of all mutual funds. The attestation should be done by a Notary, Gazetted Officer or manager of a scheduled bank
PAN-like number to be must for MF investors
BS Reporter in Mumbai | December 28, 2006 10:08 IST
Top Emailed Features
• Earn millions through franchising
• Warning! Read home loan documents well
• How to get rich by tax planning
Tell us
• Ask a question
Find more about�
• Buy out Businesses
• Invest here
• Auto Loans
Come 2007, individuals as well as corporates investing Rs 50,000 and more in single mutual fund scheme would be required to apply for mutual fund investors number, as prescribed by the know your client norms of the Securities and Exchanges Board of India.
In an announcement made in Mumbai on Wednesday, Association of Mutual Funds in India chairman A P Kurian said investors who wished to invest more than Rs 50,000 in any single mutual fund scheme in one installment would have to provide original or attested true copies of photograph, proof of identity, address proof and PAN card, on verification of which MIN would be allotted.
"Investors have to provide KYC documents and information only once to obtain the MIN, quoting which they could invest in the schemes of all mutual funds without necessity to submit the KYC documents every time they invest. Amfi came into picture to initiate this purpose, where investor would get this identification number without witnessing any hassles," Kurian said.
CDSL Ventures, a Central Depository Services subsidiary, has been given the task of document verification, MIN allocation and data preservation.
Fund houses, which earlier came out with proposals to set up their own infrastrucutre for this purpose, will now be sharing the cost of MIN allocation, as the subscriber would not be bearing the cost.
"In the initial stages, AMCs would be paying for the MIN allocation. We expect to allocate around 8-10 lakh MINs by first six months of 2008," Cyrus Khambata, chief executive officer, CVL, said.
However, as per the present guidelines, investments over Rs 50,000, done prior to December 31 this year, would not require this identification.
In another case, if an investor puts is an amount, which is slightly lower than this limit into different schemes instead of one, he would also be not required to apply for the MIN.
Asked about this, Kurian said, "To begin with, we are introducing this limit, which matches the PAN card eligibility criteria. As and when we would fulfill the targets, we could lower this and widen the scope of this identifying more investors." He also clarified that the limit would be same for retail as well as institutional investors.
Amfi, along with MFs, would be making the MIN forms available at various branches of AMCs, registrars and selected banks where the investor could avail the MIN immediately on submission and verification of the documents.
The application form would also be available on Amfi website as well as websites of all mutual funds. The attestation should be done by a Notary, Gazetted Officer or manager of a scheduled bank
Dear Sir/Madam,
Please note with effect from January 01, 2007, any investor who is investing
above Rs.50,000 in Mutual Funds needs to have an Mutual Fund Identification
Number, with out which his/her applications will not be accepted by any
Mutual Funds/Registrars.
What is KYC?
KYC is an acronym for "Know your Customer", a term commonly used for
Customer Identification Process. SEBI has prescribed certain requirements
relating to KYC norms for Financial Institutions and Financial
Intermediaries including Mutual Funds to 'know' their customers. This could
be in the form of verification of identity and address, financial status,
occupation and such other personal information.
What are the KYC requirements for a Mutual Fund Investor?
An Individual investor will have to produce his proof-of-identity and
proof-of-address. Non-Individual Investors will have to produce certain
documents pertaining to its constitution / registration to fulfill the KYC
process. A list of documents can be found on the reverse of the MIN
application form.
Does the investor have to approach every Mutual Fund separately to fulfill
these requirements?
Keeping in mind investor convenience, Mutual Funds have come together to
provide a common platform for facilitating the KYC process. An Investor will
have to obtain a Mutual Fund Identification Number ("MIN") through this
platform after completion of the verification process relating to proof of
identity and proof of address. This MIN can be quoted while transacting with
any Mutual Fund.
Where and how do I obtain a MIN?
The Mutual Fund Industry has made arrangements with CDSL Ventures Limited
("CVL"), a wholly owned subsidiary of Central Depository Services (India)
Limited, to issue a MIN. For this purpose, CVL has appointed some reputed
entities to act as Points of Service (POS). POSs are official offices to
accept MAF, verify documents and generate a MIN.
A list of the POS is available on the website of AMFI. Additionally,
designated Investor Service Centers (ISCs) of some Mutual Funds would also
be issuing MINs. Please log on to the website of the Mutual Funds with whom
you are looking to invest.
From what date is MIN mandatory?
The effective date for quoting a MIN with your investment transaction of Rs.
50,000 and above is 1st January 2007.
To whom is a MIN applicable? Is there any exemption?
Currently, all investors (individuals or Non Individuals) who wish to make
an investment transaction of Rs. 50,000 or above will be required to obtain
a MIN. This would also apply to Systematic Investment Plan (SIP)
transactions, even if the SIP was registered prior to 1st January 2007.
Investors who invest less than Rs. 50,000 are currently not required to
quote a MIN while transacting with a Mutual Fund.
Any switches made from existing investments or dividends re-invested do not
require a MIN.
All joint holders will be required to quote their MIN.
In case of existing investors when and how will the KYC norms be introduced?
While an existing investor who continues to hold investments without further
purchases of Rs 50,000 or more will not require a MIN, it is in the interest
of all investors to obtain a MIN and submit it to the Mutual Fund to avoid
any inconvenience in future.
Once an account is opened with a Mutual Fund by 1st, 2nd & 3rd holder by
completing the necessary formalities and the investors return to make a
fresh investment, do they need to furnish the necessary documents again?
Once a MIN is obtained by multiple applicants in a folio, they can continue
investing with any combination of holders by quoting their correct MIN.
Investors need not submit the documents again if they quote the MIN details
in the transaction form.
What is a MIN Application Form (MAF)?
MAF is a MIN Application form. Separate MAFs have been designed for
Individual and Non-Individual Investors. These can be downloaded from the
AMFI website or from the website of the Mutual Fund with whom you invest.
You may also approach your distributor for a form. It is important to read
the instructions printed on the MAF while filling-up the form.
How long does it take to get a MIN?
The MIN will normally be communicated across the counter at the designated
Points of Service after preliminary verification of documents. However,
based on final verification of the documents, the MIN may be
cancelled/rejected in case of deficiency of documents or incomplete
information observed in the final verification. A separate communication
intimating about the cancellation / rejection of MIN will be sent by CVL.
What are the consequences of MIN cancellation/rejection?
In cases where MIN is cancelled and applicant has been allotted units, the
allotted units will be redeemed at applicable NAV, subject to payment of
exit load, wherever applicable. (In case of an ELSS Scheme or a New Fund
Offer, the original amount invested will be refunded). Such refunds will be
dispatched within a maximum period of 21 days from date of allotment of
units. In respect of New Fund Offer the refunds will be dispatched within a
maximum period of 6 weeks from the closure of New Fund Offer.
The investor will then need to obtain a fresh MIN giving the appropriate
documentation and submit a fresh transaction form. The earlier transaction
will not be restored on submission of the newly obtained MIN.
Does the MIN have an expiry date?
No. A MIN once obtained and transacted within a period of three years, will
exist in perpetuity, unless cancelled by CVL.
Is it necessary to quote the MIN for every transaction?
No. Once the MIN is informed to a Mutual Fund, it will be registered against
the folio and quoted in all future account statements.
What happens if I have multiple folios/accounts with a Mutual Fund?
You can inform the Mutual Fund to update the MIN against all the
folios/accounts you have with it. However, each of the holders in these
folios should have a MIN of their own.
Do I have to visit a POS personally to obtain a MIN?
No. If you are not in a position to visit a POS personally, you may send the
MAF along with the necessary documents through your distributor or
representative, who can arrange to obtain the MIN for you from POS.
Is there a charge I need to pay to obtain a MIN?
Currently, MIN is issued free of cost.
I am an NRI residing outside India. How do I get a MIN?
At present, there are no POS available outside India. You may obtain the MAF
from the AMFI / Mutual Fund website. MAF duly completed along with the
necessary documents can be mailed to your representative or Distributor who
can obtain the MIN for you.
Are there any special requirements for a NRI?
Yes. In addition to the certified true copy of the passport, certified true
copy of the proof of overseas address and permanent address will also be
required. If any of the documents (including attestations / certifications)
towards proof of identity or address is in a foreign language, they have to
translate into English for submission. The documents can be attested by the
Consulate office or overseas branches of scheduled commercials banks
registered in India.
Is there any special requirement for a PIO (Person of Indian Origin)?
The requirements applicable to an NRI will also apply to a PIO. However,
additionally, he will need to submit a certified true copy of the PIO Card.
If all members in my family invest, can I get a single MIN?
No. Each individual investor will need a separate MIN.
I invest in my minor child's name? Do I need to get a MIN for my minor child
as well?
Minors cannot apply for a MIN. In case of a Minor, the Guardian of the minor
has to obtain and quote his / her MIN in the Mutual Fund form while
investing.
What about a Minor becoming a Major?
Upon a minor attaining the age of majority on completing 18 years of age,
he/she must apply for and obtain a separate MIN in his/her own name. The MIN
should be informed to the mutual funds where he/she holds investments, along
with other details such as the Bank Details, Signature, etc as per the
present requirements of such Mutual Fund.
Are there any additional requirements for investments managed by a Power of
Attorney (POA) holder?
The POA holder is also required to obtain a separate MIN in his/her own name
and quote it along with the investors' MIN while investing on behalf of the
investor.
Whom do I inform about change of Name/Address/Status/Signature etc?
You should intimate your change of Name / Address / Status / Signature etc.
in the specified form to any convenient POS. You need to quote your MIN, and
provide the necessary address proof (in case of new address). You should
provide for at least 7 days for the change of address to take effect with
all the Mutual Funds with whom you are invested. Please note that you should
not write to the Mutual Fund or its Registrar for the change of address
(unless as a designated POS). The specified form can be obtained form the
AMFI / Mutual Fund website.
For transmission (in case of death of the unit holder) cases what are the
extra documents required to be obtained?
If the deceased is the sole applicant, the claimant should quote his/her MIN
in the request along with the other relevant documents to effect the
transmission in his/her favour.
What if the address in an investors existing folio is different from what
he/she has registered at the time of KYC?
When investors quote a MIN for an existing folio, all address details of the
holder will be replaced by the address details available in the MIN record
--
Jagannathan
MIN.tmp.pdf
92K View as HTML Download
BS Reporter in Mumbai | December 28, 2006 10:08 IST
Top Emailed Features
• Earn millions through franchising
• Warning! Read home loan documents well
• How to get rich by tax planning
Tell us
• Ask a question
Find more about�
• Buy out Businesses
• Invest here
• Auto Loans
Come 2007, individuals as well as corporates investing Rs 50,000 and more in single mutual fund scheme would be required to apply for mutual fund investors number, as prescribed by the know your client norms of the Securities and Exchanges Board of India.
In an announcement made in Mumbai on Wednesday, Association of Mutual Funds in India chairman A P Kurian said investors who wished to invest more than Rs 50,000 in any single mutual fund scheme in one installment would have to provide original or attested true copies of photograph, proof of identity, address proof and PAN card, on verification of which MIN would be allotted.
"Investors have to provide KYC documents and information only once to obtain the MIN, quoting which they could invest in the schemes of all mutual funds without necessity to submit the KYC documents every time they invest. Amfi came into picture to initiate this purpose, where investor would get this identification number without witnessing any hassles," Kurian said.
CDSL Ventures, a Central Depository Services subsidiary, has been given the task of document verification, MIN allocation and data preservation.
Fund houses, which earlier came out with proposals to set up their own infrastrucutre for this purpose, will now be sharing the cost of MIN allocation, as the subscriber would not be bearing the cost.
"In the initial stages, AMCs would be paying for the MIN allocation. We expect to allocate around 8-10 lakh MINs by first six months of 2008," Cyrus Khambata, chief executive officer, CVL, said.
However, as per the present guidelines, investments over Rs 50,000, done prior to December 31 this year, would not require this identification.
In another case, if an investor puts is an amount, which is slightly lower than this limit into different schemes instead of one, he would also be not required to apply for the MIN.
Asked about this, Kurian said, "To begin with, we are introducing this limit, which matches the PAN card eligibility criteria. As and when we would fulfill the targets, we could lower this and widen the scope of this identifying more investors." He also clarified that the limit would be same for retail as well as institutional investors.
Amfi, along with MFs, would be making the MIN forms available at various branches of AMCs, registrars and selected banks where the investor could avail the MIN immediately on submission and verification of the documents.
The application form would also be available on Amfi website as well as websites of all mutual funds. The attestation should be done by a Notary, Gazetted Officer or manager of a scheduled bank
PAN-like number to be must for MF investors
BS Reporter in Mumbai | December 28, 2006 10:08 IST
Top Emailed Features
• Earn millions through franchising
• Warning! Read home loan documents well
• How to get rich by tax planning
Tell us
• Ask a question
Find more about�
• Buy out Businesses
• Invest here
• Auto Loans
Come 2007, individuals as well as corporates investing Rs 50,000 and more in single mutual fund scheme would be required to apply for mutual fund investors number, as prescribed by the know your client norms of the Securities and Exchanges Board of India.
In an announcement made in Mumbai on Wednesday, Association of Mutual Funds in India chairman A P Kurian said investors who wished to invest more than Rs 50,000 in any single mutual fund scheme in one installment would have to provide original or attested true copies of photograph, proof of identity, address proof and PAN card, on verification of which MIN would be allotted.
"Investors have to provide KYC documents and information only once to obtain the MIN, quoting which they could invest in the schemes of all mutual funds without necessity to submit the KYC documents every time they invest. Amfi came into picture to initiate this purpose, where investor would get this identification number without witnessing any hassles," Kurian said.
CDSL Ventures, a Central Depository Services subsidiary, has been given the task of document verification, MIN allocation and data preservation.
Fund houses, which earlier came out with proposals to set up their own infrastrucutre for this purpose, will now be sharing the cost of MIN allocation, as the subscriber would not be bearing the cost.
"In the initial stages, AMCs would be paying for the MIN allocation. We expect to allocate around 8-10 lakh MINs by first six months of 2008," Cyrus Khambata, chief executive officer, CVL, said.
However, as per the present guidelines, investments over Rs 50,000, done prior to December 31 this year, would not require this identification.
In another case, if an investor puts is an amount, which is slightly lower than this limit into different schemes instead of one, he would also be not required to apply for the MIN.
Asked about this, Kurian said, "To begin with, we are introducing this limit, which matches the PAN card eligibility criteria. As and when we would fulfill the targets, we could lower this and widen the scope of this identifying more investors." He also clarified that the limit would be same for retail as well as institutional investors.
Amfi, along with MFs, would be making the MIN forms available at various branches of AMCs, registrars and selected banks where the investor could avail the MIN immediately on submission and verification of the documents.
The application form would also be available on Amfi website as well as websites of all mutual funds. The attestation should be done by a Notary, Gazetted Officer or manager of a scheduled bank
Dear Sir/Madam,
Please note with effect from January 01, 2007, any investor who is investing
above Rs.50,000 in Mutual Funds needs to have an Mutual Fund Identification
Number, with out which his/her applications will not be accepted by any
Mutual Funds/Registrars.
What is KYC?
KYC is an acronym for "Know your Customer", a term commonly used for
Customer Identification Process. SEBI has prescribed certain requirements
relating to KYC norms for Financial Institutions and Financial
Intermediaries including Mutual Funds to 'know' their customers. This could
be in the form of verification of identity and address, financial status,
occupation and such other personal information.
What are the KYC requirements for a Mutual Fund Investor?
An Individual investor will have to produce his proof-of-identity and
proof-of-address. Non-Individual Investors will have to produce certain
documents pertaining to its constitution / registration to fulfill the KYC
process. A list of documents can be found on the reverse of the MIN
application form.
Does the investor have to approach every Mutual Fund separately to fulfill
these requirements?
Keeping in mind investor convenience, Mutual Funds have come together to
provide a common platform for facilitating the KYC process. An Investor will
have to obtain a Mutual Fund Identification Number ("MIN") through this
platform after completion of the verification process relating to proof of
identity and proof of address. This MIN can be quoted while transacting with
any Mutual Fund.
Where and how do I obtain a MIN?
The Mutual Fund Industry has made arrangements with CDSL Ventures Limited
("CVL"), a wholly owned subsidiary of Central Depository Services (India)
Limited, to issue a MIN. For this purpose, CVL has appointed some reputed
entities to act as Points of Service (POS). POSs are official offices to
accept MAF, verify documents and generate a MIN.
A list of the POS is available on the website of AMFI. Additionally,
designated Investor Service Centers (ISCs) of some Mutual Funds would also
be issuing MINs. Please log on to the website of the Mutual Funds with whom
you are looking to invest.
From what date is MIN mandatory?
The effective date for quoting a MIN with your investment transaction of Rs.
50,000 and above is 1st January 2007.
To whom is a MIN applicable? Is there any exemption?
Currently, all investors (individuals or Non Individuals) who wish to make
an investment transaction of Rs. 50,000 or above will be required to obtain
a MIN. This would also apply to Systematic Investment Plan (SIP)
transactions, even if the SIP was registered prior to 1st January 2007.
Investors who invest less than Rs. 50,000 are currently not required to
quote a MIN while transacting with a Mutual Fund.
Any switches made from existing investments or dividends re-invested do not
require a MIN.
All joint holders will be required to quote their MIN.
In case of existing investors when and how will the KYC norms be introduced?
While an existing investor who continues to hold investments without further
purchases of Rs 50,000 or more will not require a MIN, it is in the interest
of all investors to obtain a MIN and submit it to the Mutual Fund to avoid
any inconvenience in future.
Once an account is opened with a Mutual Fund by 1st, 2nd & 3rd holder by
completing the necessary formalities and the investors return to make a
fresh investment, do they need to furnish the necessary documents again?
Once a MIN is obtained by multiple applicants in a folio, they can continue
investing with any combination of holders by quoting their correct MIN.
Investors need not submit the documents again if they quote the MIN details
in the transaction form.
What is a MIN Application Form (MAF)?
MAF is a MIN Application form. Separate MAFs have been designed for
Individual and Non-Individual Investors. These can be downloaded from the
AMFI website or from the website of the Mutual Fund with whom you invest.
You may also approach your distributor for a form. It is important to read
the instructions printed on the MAF while filling-up the form.
How long does it take to get a MIN?
The MIN will normally be communicated across the counter at the designated
Points of Service after preliminary verification of documents. However,
based on final verification of the documents, the MIN may be
cancelled/rejected in case of deficiency of documents or incomplete
information observed in the final verification. A separate communication
intimating about the cancellation / rejection of MIN will be sent by CVL.
What are the consequences of MIN cancellation/rejection?
In cases where MIN is cancelled and applicant has been allotted units, the
allotted units will be redeemed at applicable NAV, subject to payment of
exit load, wherever applicable. (In case of an ELSS Scheme or a New Fund
Offer, the original amount invested will be refunded). Such refunds will be
dispatched within a maximum period of 21 days from date of allotment of
units. In respect of New Fund Offer the refunds will be dispatched within a
maximum period of 6 weeks from the closure of New Fund Offer.
The investor will then need to obtain a fresh MIN giving the appropriate
documentation and submit a fresh transaction form. The earlier transaction
will not be restored on submission of the newly obtained MIN.
Does the MIN have an expiry date?
No. A MIN once obtained and transacted within a period of three years, will
exist in perpetuity, unless cancelled by CVL.
Is it necessary to quote the MIN for every transaction?
No. Once the MIN is informed to a Mutual Fund, it will be registered against
the folio and quoted in all future account statements.
What happens if I have multiple folios/accounts with a Mutual Fund?
You can inform the Mutual Fund to update the MIN against all the
folios/accounts you have with it. However, each of the holders in these
folios should have a MIN of their own.
Do I have to visit a POS personally to obtain a MIN?
No. If you are not in a position to visit a POS personally, you may send the
MAF along with the necessary documents through your distributor or
representative, who can arrange to obtain the MIN for you from POS.
Is there a charge I need to pay to obtain a MIN?
Currently, MIN is issued free of cost.
I am an NRI residing outside India. How do I get a MIN?
At present, there are no POS available outside India. You may obtain the MAF
from the AMFI / Mutual Fund website. MAF duly completed along with the
necessary documents can be mailed to your representative or Distributor who
can obtain the MIN for you.
Are there any special requirements for a NRI?
Yes. In addition to the certified true copy of the passport, certified true
copy of the proof of overseas address and permanent address will also be
required. If any of the documents (including attestations / certifications)
towards proof of identity or address is in a foreign language, they have to
translate into English for submission. The documents can be attested by the
Consulate office or overseas branches of scheduled commercials banks
registered in India.
Is there any special requirement for a PIO (Person of Indian Origin)?
The requirements applicable to an NRI will also apply to a PIO. However,
additionally, he will need to submit a certified true copy of the PIO Card.
If all members in my family invest, can I get a single MIN?
No. Each individual investor will need a separate MIN.
I invest in my minor child's name? Do I need to get a MIN for my minor child
as well?
Minors cannot apply for a MIN. In case of a Minor, the Guardian of the minor
has to obtain and quote his / her MIN in the Mutual Fund form while
investing.
What about a Minor becoming a Major?
Upon a minor attaining the age of majority on completing 18 years of age,
he/she must apply for and obtain a separate MIN in his/her own name. The MIN
should be informed to the mutual funds where he/she holds investments, along
with other details such as the Bank Details, Signature, etc as per the
present requirements of such Mutual Fund.
Are there any additional requirements for investments managed by a Power of
Attorney (POA) holder?
The POA holder is also required to obtain a separate MIN in his/her own name
and quote it along with the investors' MIN while investing on behalf of the
investor.
Whom do I inform about change of Name/Address/Status/Signature etc?
You should intimate your change of Name / Address / Status / Signature etc.
in the specified form to any convenient POS. You need to quote your MIN, and
provide the necessary address proof (in case of new address). You should
provide for at least 7 days for the change of address to take effect with
all the Mutual Funds with whom you are invested. Please note that you should
not write to the Mutual Fund or its Registrar for the change of address
(unless as a designated POS). The specified form can be obtained form the
AMFI / Mutual Fund website.
For transmission (in case of death of the unit holder) cases what are the
extra documents required to be obtained?
If the deceased is the sole applicant, the claimant should quote his/her MIN
in the request along with the other relevant documents to effect the
transmission in his/her favour.
What if the address in an investors existing folio is different from what
he/she has registered at the time of KYC?
When investors quote a MIN for an existing folio, all address details of the
holder will be replaced by the address details available in the MIN record
--
Jagannathan
MIN.tmp.pdf
92K View as HTML Download
Comments