Friday, May 29, 2009

Stringent KYC norms PROPOSED for mutual fund investments

Mutual Fund investors must brace themselves for more stringent KYC (Know-Your-Client) norms going forward. The Government of India, based on the suggestions given by the finance ministry, is contemplating to impose stricter KYC norms on mutual fund investments. The step is directed towards curbing the flow of black money into the stock markets. At present, investments of Rs 50,000 and above are only subjected to KYC norms. However, if the proposed norms come into force, all mutual fund investments irrespective of the investment amount, will be subjected to the KYC norms. Under these norms, investors have to register details of their PAN, income, address and contact details.

The proposed KYC norms may face some resistance from investors who normally invest in smaller amounts. They might take this move as an extra burden on their shoulders. And to address this issue, the onus is on the Government to ensure that the process of KYC registration is simple and less cumbersome for investors. One way to make it easier for investors is by opening more centers, where they could get their registration done. Moreover, Government should ensure that the process is speedier and does not lag. Also, starting an online platform where investors can register their details will be helpful for them.

No comments:

Blog Archive

Life Insurance | Health Insurance | Auto Insurance

Investors Please Listen !

More than 100 kinds of Insurance products from more than
20 companies under one roof.

Call: 9818269396



Safe Harbor:

The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.
Powered by Olark
Advertising Learn to Invest