Latest: You can now invest in mutual funds, even without a PAN!

By | October 9, 2012

Before we explain this latest development pertaining to the rules about PAN requirements in terms of mutual fund investments, we will give a quick recap of the legal fabric that existed before this latest ruling from SEBI. What used to happen earlier was that a PAN was not compulsorily required, up to investments of Rs 50,000 in all mutual funds, per year.  However, when the KYC norms were put into place (Know Your Customer norms) for mutual funds investments, the government also made the furnishing of PAN information necessary (SIP investments were exempt). Investors can use their voter ID card, government ID card, passport, or driving license for KYC verification. However, in September 2012, the Securities and Exchange Board of India (SEBI) has declared that quotation of PAN will not be compulsory for investments in mutual funds up to Rs 50,000. There are as many as 44 mutual fund houses, which means that without the furnishing of PAN information, a total of Rs 22 lakh can be invested in mutual funds.

 

Leave a Reply

Your email address will not be published. Required fields are marked *