'How many times KYC needs to be done?': Kotak AMC's Nilesh Shah annoyed over verification process
Shah, however, acknowledged the efforts by mutual fund distributors and intermediaries, and urged Sebi to direct agencies to do a better job.
- Mar 30, 2024,
- Updated Mar 30, 2024 1:01 PM IST
The current know your customer (KYC) process has left Nilesh Shah, the MD of Kotak AMC, annoyed.
Shah took to X on Friday to express his displeasure over the process. “After three decades in market and filling every form for KYC over the years including bio metric verification (for now abandoned MPIN) my heart pains to receive such e mail,” Shah said, sharing a screenshot of a KYC mail.
“How many times KYC needs to be done? Clearly our KRA agencies / Registrar can do a better job,” he added. Several X users resonated with Shah's sense of annoyance. “You are Honcho of MF industry and still facing such issue. Imagine the pain & waste of time of Investors and Mutual Fund Distributors. Can't we adopt Universal KYC concept,” wrote Darshit Patel, a user.
Shah, however, acknowledged the efforts by mutual fund distributors and intermediaries, and urged Sebi to direct agencies to do a better job.
“Kudos to all mutual fund distributors and intermediaries who tirelessly keep on updating KYC requirements for their clients. Sebi should direct KRA agencies and the RTAs to do a better job,” he said.
Navam Capital's Rajeev Mantri wrote in reply, “There is a Kafkaesque level of compliance and paperwork in anything to do with financial services sector. How will savings be converted into investment, if intermediaries and participants alike are strangled with red tape? Will India become a $10T economy just like that?”
Ajay Pandey, CEO and co-founder of CARD91 wondered if there is a need for a separate body like NPCI to smoothen KYC. “#KYC is one process, if overhauled can make financial services distribution speedy and cost effective. You ask any regulated entity, the biggest nightmare for them is KYC, also cost is prohibitive in certain cases. Do we need a separate body like NPCI to smoothen out KYC?”
The current know your customer (KYC) process has left Nilesh Shah, the MD of Kotak AMC, annoyed.
Shah took to X on Friday to express his displeasure over the process. “After three decades in market and filling every form for KYC over the years including bio metric verification (for now abandoned MPIN) my heart pains to receive such e mail,” Shah said, sharing a screenshot of a KYC mail.
“How many times KYC needs to be done? Clearly our KRA agencies / Registrar can do a better job,” he added. Several X users resonated with Shah's sense of annoyance. “You are Honcho of MF industry and still facing such issue. Imagine the pain & waste of time of Investors and Mutual Fund Distributors. Can't we adopt Universal KYC concept,” wrote Darshit Patel, a user.
Shah, however, acknowledged the efforts by mutual fund distributors and intermediaries, and urged Sebi to direct agencies to do a better job.
“Kudos to all mutual fund distributors and intermediaries who tirelessly keep on updating KYC requirements for their clients. Sebi should direct KRA agencies and the RTAs to do a better job,” he said.
Navam Capital's Rajeev Mantri wrote in reply, “There is a Kafkaesque level of compliance and paperwork in anything to do with financial services sector. How will savings be converted into investment, if intermediaries and participants alike are strangled with red tape? Will India become a $10T economy just like that?”
Ajay Pandey, CEO and co-founder of CARD91 wondered if there is a need for a separate body like NPCI to smoothen KYC. “#KYC is one process, if overhauled can make financial services distribution speedy and cost effective. You ask any regulated entity, the biggest nightmare for them is KYC, also cost is prohibitive in certain cases. Do we need a separate body like NPCI to smoothen out KYC?”