You have decided to start a SIP. You message us, ready to go, and the reply is a list: PAN, address proof, a photograph, a signature. It can feel like a lot of paperwork before a single rupee is invested.
It is not paperwork for its own sake. It is KYC, and it exists for a reason worth knowing.
The law behind it
KYC stands for Know Your Customer. The Prevention of Money Laundering Act, 2002 requires fund houses to verify who is investing with them, so that the financial system cannot be used to hide money that came from crime. As your distributor, we collect and check your documents on the fund house's behalf.
What we collect
- PAN, which identifies you for tax.
- Proof of address.
- A photograph and your signature.
- A tax-residency declaration, which says whether you are a tax resident of another country.
The records are kept for as long as the law requires.
Where it goes, and why you only do it once
Your KYC is registered with a SEBI-registered KYC Registration Agency, and shared with the fund house and its registrar. Once it is registered, other fund houses recognise it too, so you do not repeat it for each one. If your address, name or other details change, the KYC record needs to be updated; tell us and we will do it.
What we do not do
We do not sell your details. We use them only to service your investments and to meet our legal obligations, and we ask only for what the law and your investments need.
A practical tip: nobody genuine will ask for your OTP, your bank password or your UPI PIN to do KYC. If someone does, stop. More on checking who you deal with: is the person giving you tips registered? Questions about your own KYC? Ask us.
Collected for the law. Used for your account. Nothing else.