If you don’t link your Mutual Fund investments by Dec 31, 2017, deadline, there is a chance that your folios may be frozen. Read on to know more.
The Prevention of Money Laundering Act (PMLA) Rules, 2017 has seen some amendments and it is now mandatory for fund houses to obtain the Aadhaar numbers from investors and seed it to their respective folios.
If you are a new investor just starting out with Mutual Funds, this information can be captured during your KYC process. However, if you are already invested in several folios, you will have to manually link them to all of those folios before the December 31, 2017, deadline.
There is a slew of online options which help you expedite this task. You can either get in touch with your Asset Management Company (AMC) directly. If you have your PAN number and folio number handy, this can be done through a link on the respective website.
Alternatively, you can also use the services of Mutual Fund registrar and transfer agents such as CAMS. This option may prove yet more convenient as an RTA typically houses several fund houses under its wing and you can seed your Aadhaar number across several folios at once.
If you prefer to follow an offline route, you can contact your AMC or RTA to find out about the requisite process. This may involve filling out a form and submitting it with the relevant documentation to the nearest branch and may also take a little longer than an online process.
Keep in Mind
While seeding your Aadhaar sounds like a straightforward activity, there could be some complexities involved. If the name on your folio does not match the name in your Aadhaar, there is a chance that your request for linking might be rejected.
It is also mandatory for all holders of a fund to link their Aadhaar – hence, the same process has to be followed for all the investors in a fund.
Lastly, if you are holding mutual fund units in a demat format, you will be required to approach your depository participant and link your Aadhaar to your demat account.
Regardless of the channel you use to link your Aadhaar with your folios, ensure that it is complete by December 31, 2017. If not linked by then, there is a chance that your folios may be frozen and you will be unable to transact on them.