KYC – Opening doors to your investment
You are probably familiar with the frequent requests from your bank to complete your Know Your Customer (KYC) forms. But did you know that KYC is equally important for investment platforms? In fact, if you do not complete your KYC formalities, you may not be able to invest in mutual funds at all.
When I first started thinking of investing in mutual funds I was a little irritated. “So much paperwork!” I thought. Before realising that KYC is as important for me as an investor, as it is for the investment company.
KYC for mutual funds is:
- Mandatory – according to the regulations of the SEBI issued in 2011, all Asset Management Companies, Registrar and Transfer Agents, Portfolio Managers and Online Distributors have to complete the KYC formalities of all their clients,
- A guarantee to protect yourself and your financial management firm from fraud. The idea behind this is to ensure that unaccounted money is not invested through mutual funds and these platforms are not used for money laundering.
KYC is easier because:
- It is not time-consuming and does not involve any red tape.
- You can choose any means of completing the formalities – in person or online.
- All you need is self-attested copies of your identification and address proof. You can use your Adhaar Card, Pan Card, Driving Licence or Passport.
- If you want to do it in person, you can go to any branch office of your AMC or R&T agent with the documents and photographs. You need to log into the site of your AMC and click on the e-verification or eKYC link. Here you can upload your documents and complete the KYC in a couple of minutes.
Partner with Basis
Basis, has eased this process for you and helps you complete and finish the KYC formalities through the app. The In-Person Verification (which is mandated) is also completed with the assistance of the team at Basis. If you are using Aadhaar Card as identity proof, you can invest only up to ₹ 50,000. However, if you do in-person verification after this or even video verification, you can increase the amount you can invest.
The idea of doing KYC may seem like an annoyance but do complete this one-time process and ensure your own safety.
Get KYC verified and start your investing journey, download the Basis app now.