The Association of Mutual Funds of India (AMFI) has reportedly mandated investors to update the Permanent Account Number (PAN) details in the mutual fund portfolios for the redemption of investments.
In an inspection by the market regulator Securities and Exchange Board of India (SEBI) earlier, it was found out that mutual fund redemptions were being processed by fund houses and registrar and transfer agents (RTAs) without any PAN details.
Also Read: IT Department Warns Taxpayers Against Disclosing PAN on Social Media
Generally, investors are requested to enter their PAN information during the KYC process. However, investors contributing less than Rs.50,000 per mutual fund during a financial year had the option to provide other recognised proofs of identity, which are in par with the PAN. These investors were also given a PAN-exempt KYC reference number (PEKRN).
Investors who have not updated their PAN details can do so by either logging in to their mutual fund portal/RTA or visiting the nearest mutual fund’s office where you can submit your PAN details along with a photocopy of your PAN card.
Now that AMFI has mandated the updation of PAN details, investors who fail to do so may not be able to perform any financial or non-financial transactions.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
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