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KYD

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The Association of Mutual Funds in India (AMFI) introduced the Know Your Distributor (KYD) process effective from September 1, 2010 in an effort to review the existing registration procedure for Mutual Fund Distributors and initiate necessary action to strengthen the same.

In addition, this process would also help ensure correctness of information furnished in the registration application and have an in-person verification of ARN holders.

The KYD procedure consists of document verification and biometric process. The distributor is therefore required to apply for KYD simultaneously along with application for registration of ARN.


Important Points

  • KYD norms are applicable for fresh ARN registration applications made and ARN renewal falling due on or after September 1, 2010.
  • Existing ARN holders are also required to comply with KYD norms within 6 months, i.e., by end of February 2011, failing which AMCs are directed to suspend payment of commission till the distributors comply with the requirements.
  • CAMS has been appointed as the agency to carry out KYD formalities including bio-metrics
  • CAMS will be initially providing KYD facilities at 60 Point of Services (POS), which will be expanded to include more centres, if required.
  • POS details are available on the AMFI Website.

KYD Process Flow

Distributors have to visit nearest the CAMS POS with duly completed KYD applications, self-attested photocopies of relevant documents and 2 self-attested passport size colour photographs.

Distributors are required to produce, in person, the original documents for verification at the time of submission of their applications along with self-attested photocopies of the same. Biometric process will also be carried out at the CAMS POS at the time of submission of applications for registration or renewal of ARN along with KYD application form.

Distributors can obtain the acknowledgement from the CAMS POS confirming the completion of the KYD process.

All distributors who obtain KYD acknowledgement from CAMS by completing the KYD formalities are required to send a photocopy of acknowledgement issued by CAMS as a confirmation of having complied with KYD requirements to the concerning AMCs (AMCs with which the distributors are empanelled).

The AMFI drawn KYD process note and the prescribed Application form for KYD and updating of information such as change of address, contact details, bank account, etc. are available on the AMFI website.

All distributors are required to apprise themselves of AMFI-mandated KYD process.

Principal Mutual Fund has accordingly initiated steps as required by the above-referred AMFI communication to ensure effective compliance of KYD by the distributors empanelled with us.

For any clarifications:

  • Get in touch with the concerned Relationship Manager of the AMC OR
  • Call our toll free number 1800-425-5600 and speak to the Client Relationship Agent OR
  • For Brokerage structure related queries, please write into pmfdistributor@principalindia.com
  • For Brokerage payout, computation, KYD and related queries, please write into amcbrokerage@principalindia.com




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