If you invest in mutual funds, get ready to disclose your annual income or net worth among other details in the new know-your-customer (KYC) form.
The capital market regulator, Securities and Exchange Board of India (Sebi), has made it mandatory for mutual fund investors making fresh investments to disclose this detail from 1 December 2012.
Investors who had completed the centralised KYC registration process before January 2012 will have to provide the additional information by filing a small 'KYC details change' form which includes the gross annual income or net worth.
The new KYC registration process also makes in-person verification mandatory for investors. Customers will have to submit the change form along with identity and address proof themselves at the nearest branch of a mutual fund company or a KYC registration agency. This is a one-time process and investors are not required to repeat the process with a new fund house. If an investor is already KYC-compliant according to the earlier norms, there will be no effect on the on-going transactions in the existing accounts.
