Knowledge Center

What is KYC?

KYC is a process to capture and validate customer details before a folio is created to begin transacting in mutual funds. The KYC process has been made uniform across the financial sector and is now done through KRAs (KYC Registration Agency). KYC is an acronym for “Know your Client”, a term commonly used for Client Identification Process. KYC establishes an investor’s identity & address through relevant supporting documents such as prescribed photo id (e.g., PAN card, Aadhar card) and address proof and In-Person Verification (IPV). KYC compliance is mandatory under the Prevention of Money Laundering Act, 2002 and Rules framed there under, read with the SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries.