KYD Process for Mutual Fund Distributors

Know Your Distributor (KYD) Process for Mutual Fund Distributors

AMFI has introduced the process of Know Your Distributor (KYD) for all mutual fund distributors (Ref Circular: 35P/ MEM-COR/ 13/ 10-11 dated August 27, 2010)

The Know Your Distributor (KYD) norms is similar to KYC norms for investors, requiring the distributors to submit mandatorily identity proof, address proof, PAN and bank account details with proof. It is also decided to introduce bio-metrics as a part of KYD process.

The process would start with KYD being mandatory for fresh ARN registrations / renewals effective 1^st September, 2010. The existing ARN holders would have to comply with the KYD requirements by Feb’ 11 failing which the payment of brokerage / commission to them will be suspended / put on hold till the requirements are complied with

The prescribed form for KYD and updation of information such as change of address, contact details, bank account, etc. would be available on AMFI Website shortly

PROCESS FOR KYD COMPLIANCE:

A. Document Verification

• The distributors will have to submit their applications for registration with AMFI, alongwith the KYD application and self attested photocopies of relevant documents as mentioned against their respective category in the table below.
• AMFI has engaged the services of Computer Age Management Services Ltd. (CAMS) to carry out the KYD process through their centres in 60 locations initially (hereinafter referred to as “CAMS Point of service” / “CAMS POS”).
• KYD application along with the requisite documents could be submitted at any of the CAMS POS, a list of which is available at www.amfiindia.com or www.camsonline.com.
• The distributors are required to produce, in person, the original documents for over the counter verification at the time of submission of their applications along with self attested photocopies of the same.
• The distributor should obtain the acknowledgement from the CAMS POS confirming completion of KYD process.
• The said acknowledgement should be submitted along with the relevant documents for empanelment / renewal
• The existing ARN holders empanelled with us will have to send photocopy of the said acknowledgement to us. AMFI would be sending communications to all existing ARN holders advising them to send to us the copy of the acknowledgement issued by CAMS as a confirmation of having complied with KYD requirements.
• AMFI has decided not to charge ARN holders for carrying out KYD process, at present.

Category of ARN holder	KYD Documents required to be submitted
	Documents for Identity Proof	Documents for address proof (any one of the following)
Individuals & Senior Citizens	Photo PAN Card (Mandatory)	i)         Ration Card (Vernacular language) ii)       Passport iii)      Latest Demat/ Bank Account Statement ** iv)     Voter Identity Card v)       Latest Utility (Electricity / Municipal tax/ Water-tax/  Land Line Telephone) Bill* vi)     Driving License vii)    Lease / Sale Agreement of Residence
Proprietary Concern	i)         PAN card  of the Concern (if available) or ii)       Photo PAN card of the Proprietor	If the address of the proprietary concern and the proprietor is same, the following documents in the name of proprietor : i)       Ration Card (Vernacular language) ii)     Passport iii)    Latest Demat / Bank Account Statement ** iv)   Voter Identity Card v)     Latest Utility (Electricity/ Municipal tax/ Water-tax/  Land Line Telephone) Bill* vi)   Driving License vii)  Lease / Sale Agreement of Residence In case location of concern is different, then the following documents in the name of proprietary concern: i)       Latest  Bank Account Statement  ** ii)     Latest Utility (Electricity/ Municipal tax/ Water-tax/  Land Line Telephone) Bill * iii)    Lease/ Sale Agreement of office
HUF	PAN card of HUF	If the address of the HUF and the Karta of HUF are same, the following documents in the name of Karta: i)       Ration Card (Vernacular language) ii)     Passport iii)    Latest Demat/ Bank Account Statement ** iv)   Voter Identity Card v)     Latest Utility (Electricity/ Municipal tax/ Water-tax/  Land Line Telephone) Bill * vi)   Driving License vii)  Lease / Sale Agreement of Residence In case location of HUF is different, then the following documents in the name of HUF: i)       Latest  Bank Account Statement  ** ii)     Latest Utility (Electricity/ Municipal tax/ Water-tax/  Land Line Telephone) Bill * iii)    Lease / Sale Agreement of Office
Partnership Firm/ Societies/ Trust	PAN card of Firm	i)    Latest Utility (Electricity/ Municipal tax/ Water-tax/ Landline Telephone)  bill * ii)   Lease / Sale Agreement iii)    Latest Bank Account Statement  / Bank Passbook **
Corporates (Pvt./ Public Ltd. Co., Banks, NBFC)	PAN card of the corporate entity	i)     Latest Utility (Electricity/ Municipal tax/ Water-tax/ Landline Telephone)  bill * ii)    Lease / Sale Agreement iii)   Latest Bank Account Statement  / Bank Passbook **

*   Not more than 2 months old.  

 ** Where bank account statement is submitted as proof of address, the said bank account should have been opened at least six months prior to the submission of application and the statement should not be more than 2 months old.

For any other category of Distributors not covered in the above list, please contact AMFI/ CAMS for assistance.

B.             Bio-metric :

The Bio-metric process involves taking impression of right hand index finger and registering the same for identification purpose. The said process will be carried out at the CAMS POS, at the time of submission of applications for registration or renewal of ARN along with KYD application form.

·   Individual and Senior Citizen Category Distributors are required to visit in person for Biometric registration.

·   In case of non individual entities, bio-metric is required to be carried out for the authorised persons/ officials as indicated in the below mentioned table:-

Category of ARN holder	Persons required to undergo bio-metric process
Proprietary Concern	Proprietor
Partnership firm	All the Partners
HUF	Karta of HUF and the signatory to the application (if the signatory is a person other than the Karta).
Societies & Trust	Principal Officer/Chief Trustee and the signatory to the application (if the signatory is a person other than these officials).
Corporates (Pvt./ Public Ltd. Co., Banks, NBFC)	Authorized official who has signed ARN application

In case of non individual entities, the persons who are required to undertake bio-metric process as indicated in the above table are also required to comply with the document verification process by submitting the required documents i.e. proof of identity and proof of address as applicable to individual applicants.