Investment Tips: Even if your Aadhaar-PAN is not linked, you can still invest in mutual funds...

Now investment in mutual funds will continue even if Aadhaar-PAN is not linked. Market regulator SEBI has relaxed some of its KYC-related restrictions for investing in mutual funds.

Earlier, SEBI had said that an Aadhaar and PAN link is necessary for mutual fund-related transactions. SEBI had implemented the rule from April 1 this year that if someone's phone number or email ID has not been validated or their Aadhaar-PAN is not linked, then they will be kept in the hold category. Such investors were not able to do transactions related to mutual funds. Now they have got relief.

Investors who used any other document other than Aadhaar for validation were put in the registered category. Such investors could continue investing in the existing mutual fund but were not able to put money in any new folio. After SEBI's relaxation, they have also got relief.

'KYC on hold' is now also 'KYC registered' but...

Investors who have used Aadhaar for KYC have been placed in the 'KYC verified' category and can carry out transactions normally.

In its circular, SEBI has clarified that even if the validation is not complete or PAN-Aadhaar is not linked, investors will not be placed in the 'KYC on hold' category, but they will be placed in the 'KYC registered' category. In such a situation, they will be able to continue investing.

Amol Joshi, founder of PlanRupee Investment Services, said, 'People who have not yet linked their PAN and Aadhaar will be able to transact in the mutual funds in which they are currently investing. However, it is still necessary to link PAN with Aadhaar for investing in a new folio.'

How to get KYC validated?
There are several ways for investors to change their status to 'KYC validated' and the easiest way is to visit the website of the mutual fund in which they are currently investing. There they will have to update KYC using Aadhaar. Amol Joshi said that this can usually be done through the 'Modify KYC' link. Fresh investments can also be made through the 'New KYC Form' on the mutual fund website.

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