Market regulator SEBI has relieved crores of investors by making the recently implemented changes in KYC rules somewhat easier. This will benefit more than one crore investors whose mutual accounts were put on hold.
SEBI Gave This Relaxation In KYC
After SEBI’s relaxation, KRA, i.e. KYC registration agencies, can now verify information like PAN, name, address, email, and mobile number from the official database. SEBI says that if this information is found in the order, it will be considered a validated record.
Changes Came Into Effect From April 1
Earlier, SEBI tightened the KYC rules for mutual fund investors. Due to the regulator’s changes, many investors must undergo KYC again. These rules took effect on April 1, 2024, and the mutual fund accounts of investors who did not conduct fresh KYC were put on hold.
So Many Accounts Were Put On Hold
It was told that around 1.3 crore mutual fund accounts were held due to incomplete KYC. KYC registration agencies had said that investors used documents in the initial KYC process that are no longer officially valid or did not complete KYC through Aadhaar, which put their accounts on hold. However, such investors are expected to get relief from the latest exemption given by SEBI.
Such Investors Will Get Relief
Holding a mutual fund account caused more problems for investors who are NRIs or live in any other country outside India. He could not withdraw money from his mutual fund account because it was put on hold. After verification from KRA, KYC can be considered complete, and the hold on the account can be removed.
