We all have heard about irregularities in the financial world, such as bogus bank accounts, issues due to duplicate Pan, ID and so on. Irregularities arise due to such things were rampage a few years back. But rapid changes in technology have led to more financial transparency and fewer irregularities. The introduction of Aadhar card has brought more centralization of database & financial information. Mutual Fund companies too face similar issues and they come up with an even better solution-getting the investor to verify in–person.
The Brief History of IPV in Detail:
IPV comes into force after passing of the Prevention of Money Laundering Act 2002. The act was designed to ensure that no one was able to use investment tools to launder their ill-gained wealth. It notified to impose an obligation on banking companies and financial intermediaries to verify the identity of clients. Soon, after the act coming into effect, the SEBI mandated that all intermediaries helping their clients with investments should maintain the KYC policy. After 1st January 2011, KYC Compliance has been made mandatory for all categories of investors. This is irrespective of the amount invested and includes the following transactions:
- New/Additional Purchases
- Switching Transactions
- New registrations for SIP/STP/Flex STP/ Flex Index/DTP
- Any SIP/STP/triggered-related products launched after the Act coming into effect.
How to Get Your IPV Done:
To get the IPV done, the investor must produce the original copy of ID and residential proofs (he has submitted electronically at the fund house). These days, one just does a live authentication via video conferencing at a pre-agreed time rather appearing in–person at the office. But one must note down that, internet connection is fast.
Procedure–related to IPV Authorization:
One needs to have these documents to do carry out IPV Authorization.
- KYC registration
- The AMC
- Mutual Fund Agent
- Mutual Fund Distributor
- MF’s registrar
- Transfer agent CAMS & Karvy
The fund house will complete your KYC after the in-person verification.
