Mutual Funds – How to Invest with out Pan Card? (Telugu)
SEBI has decided to exempt the requirement of the permanent account number (PAN) for investing (both lump sum and SIP) up to Rs 50,000 per mutual fund company, per year. Now, instead of PAN, investors can submit their voter id card, passport or driving license for photo identification. The rule is applicable with immediate effect without KYC to Invest in mutual funds…
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“Micro schemes such as systematic investment plans of mutual funds, micro products of microfinance institutions, up to Rs 50,000 per year per investor shall be exempted from the requirement of PAN.
Such schemes may be operationalized with other standard specified identification instruments such as Voted Identity Card, Government/Defence ID Card, The card of a reputed employer, driving license and passport.
As per the Ministry of Finance circular, investments in mutual fund schemes (including investments in SIPs) of up to Rs 50,000 per investor per year per mutual fund company shall be exempted from the requirement of PAN Card,” states a SEBI communication dated 24th July addressed to AMFI.
“Earlier all AMC( mutual funds) allowed Rs.50,000 only across all mutual funds. But, Now technically you can be invested Rs 50,000 in each AMC.
Under this rule, there are separate KYC guidelines. These investments are now exempt from PAN. KYC is mandatory even now.
However, small ticket size investors can invest without a PAN Card by submitting either their passport or driving license as a proof to comply with KYC,” says an operations head of a leading fund house.
Benefits of this new rule?
Industry experts say that such a move will boost investments, particularly from smaller towns and villages.
The move is likely to give a breather to mutual fund advisers(agents) who have been complaining about the complexity of KYC requirements.
For instance, an investor can invest Rs 50,000 without a PAN card in each AMC. Technically,Now he/she can invest Rs 22, 00,000 across 44 AMCs.
Officials saying that earlier there was no mechanism to track investors investment up to Rs 50,000 across all AMCs to comply with SEBI rule. With the relaxed norms, AMCs are expecting to cut down some of their operational hurdles.