Investors in mutual funds have a crucial reminder to ensure that you have provided your name and date of birth in your mutual fund (MF) folio as listed on your PAN card or (POI) proof of identity by tomorrow.
Effective from April 30, 2024, Mutual Fund Transfer Agencies (RTAs) have mandated that accurate name and date of birth information should be submitted in mutual fund folios, by the details provided on PAN cards or other proof of identity and if there is a mismatch you must get it rectified by tomorrow.
It is important to ensure that the name and date of birth in your mutual fund folios match the details mentioned on your PAN card.
Failure to do so can result in rejection of your transactions, including SIPs and redemptions. Mutual Fund Transfer Agencies (RTAs) like MF Central and CAMS have this message prominently displayed on their official websites.
The move comes by directives from the Income Tax Department and Sebi's recent Master Circular on Know Your Customer (KYC) requirements and mutual funds are now mandated to validate the name and date of birth (DOB) against the PAN details available with the Income Tax Department.
According to the MF Central and CAMS website, “As per recent Master circular on KYC requirements of SEBI and changes advised by Income Tax Department in PAN validation process, now it is mandated to quote your Name(s) and DOB/I as per PAN card/POI. All Mutual Funds are mandated to validate the Name and DOB/I against the PAN available with the Income tax department. To avoid any failure in such validations, we request investors to quote the Name(s) and DOB/I of all the holders including Guardian, Power of Attorney [POA] holders as per PAN card in all new application forms (physical and digital) and KYC forms.”
Note that transactions, including SIPs and redemptions, could get rejected by the RTAs if the name and date of birth on the MF folios and PAN do not match, RTAs said.
Union Mutual Fund, among others, on X platform informed the change in PAN validation methodology effective from April 30, 2024.
The new process requires three input parameters such as the Permanent Account Number, name as per the PAN card, and date of birth/date of incorporation currently DOB does not exist as a validation parameter and the other two exist.
The guidelines apply to all Unit Holders (1st, 2nd, 3rd Applicant), Guardian PAN in case of Minor Investments Power Of Attorney and ultimate beneficiary owners.
All physical forms must have a clear copy of the PAN card of all holders. The name should match PAN exactly, including the correct Date of Birth. The system in the validation process returns results as either "Yes" or "No," hence, the exact name becomes imperative.
