What is KYC and How to check your KYC status

By | November 12, 2010

Recently, I have started learning share trading on my own. I took an ICICI trading account and initially started with IPOs. If you know or not, recent Coal India IPO was a big hit making 40% profit for retail investors within days of listing. I already tried investing in mutual funds and made good returns too. I was investing through Way2Wealth before. As I got the trading account, I tried to invest in mutual funds through my trading account. After I have gone through the mutual fund research, I selected a fund, selected the amount, and clicked the apply button. It showed the error “KYC Details Are Not Found.”


So, I called the ICICI Direct people and found that my KYC Status is not found on the Central Depository Services and I need to update it by providing address and identity proofs. They sent me the KYC form. I filled and submitted it at the ICICI Direct.

So, I have done a little research and learned about the KYC Norms implemented by SEBI.

What is KYC?
KYC – Know Your Client/Customer is a term used for client/customer identification. Financial institutions need to know who the customer is, need to verify the address, and know about the financial and occupational status. It is mandatory that investors have to be KYC compliant if they are investing more than 50,000 in mutual funds. The provisions of The Prevention of Money Laundering Act, 2002 (PMLA), has made it mandatory for all Mutual Funds to comply with the KYC norms of the applicants desirous of subscribing to their ‘units.’

For this process, CDSL Ventures Limited (CVL) has been formed by the Mutual Fund industry to create the necessary infrastructure to handle the KYC on behalf of the Mutual Fund Industry. CVL is handling the work of “Customer profiling and Record Keeping” for issuance of Know Your Client (KYC) acknowledgment to mutual fund investors.

How to update the KYC?
Download the KYC form here. Take a print out, fill it, add address proof and ID proof, and hand it over at the Investor Service Desk of your bank/trading service provider/CVL Point of Service.

KYC is linked to your PAN and you don’t need to fill KYC form for every mutual fund you are subscribing for. Just do it once and it will available for all you investments that is the biggest advantage of having updated the KYC in CVL.

How to check the KYC status?
Go to the CVL website http://www.cvlindia.com/ and click on “Inquiry on KYC.” Enter your PAN and see the status of your application.


175 thoughts on “What is KYC and How to check your KYC status

  1. Thotapalli Sreenivasa Murthy

    I wanted to know my KYC status, accordingly I submitted my PAN card number but it says invalid data. What does it mean?

    Reply
    1. Naveen Post author

      Have you submitted the KYC form? I think it takes 10-15 days for verification and around 5 days for showing the status.

      Reply
  2. S S RAWAT

    PRESENT IN PROCESS-DOCUMENT YET TO RECEIVE
    WHAT DOES THIS MEAN

    Reply
  3. Navin

    I applied for the KYC a week ago, and when I check the status on CVLIndia website, it says invalid data, can any one tell what does it actually mean (I entered correct PAN number)?

    Reply
    1. Naveen Post author

      Wait for at least 2 weeks and see. If nothing appears, then your application must have rejected for some reason and soon you will get your form mailed to your address mentioning the reason.

      Reply
  4. sachin

    hi. can i still apply for new mutual funds if my kyc status says PRESENT IN PROCESS-DOCUMENT YET TO RECEIVE..sachin

    Reply
  5. sachin

    if my kyc status says PRESENT IN PROCESS-DOCUMENT YET TO RECEIVE..can i still make some additional purchase in my existing portfolio and start a sip..sachin

    Reply
    1. ashish

      yes, you can.. infact if your KYC is still in processing state, you can buy Mutual Funds provided that you submit id proof and address proof during MF purchase

      Reply
  6. bala

    all my MF account statements has already my PAN registered, Address, Email id, etc. so what extra information CDSL will get apart from these. also i thought providing the PAN No# is the identity and authenticity of the customer’s identity. I feel this is stupid, redundant process enforced by SEBI.

    Reply
    1. Naveen Post author

      If we have to invest in 5 different mutual funds, then we need to provide the proofs to all. If you are verified by CDSL, you do not need to. I invest in different mutual fund houses online and I do not need to send a single paper to anybody. That is what the idea behind a central verification.

      Reply
  7. Navin

    Hello Naveen,

    I am an NRI and I would really appreciate which authentic website would you recommend that provides facility to invest online and how much do they charge?

    Reply
  8. Kunal

    PRESENT IN PROCESS-DOCUMENT YET TO RECEIVE

    Do I need to do anything at this point? When will the process be completed?? Thanks

    Reply
  9. Sumit Modi

    CDSL site was showing Present – In process for my KYC Status, but now it shows invalid data. What could be the issue.

    Reply
    1. Naveen Post author

      I think it is rejected…soon you will get the documents returned by post with the reason for rejection.

      Reply
  10. Sumit Modi

    Thanks for the reply naveen…But after 3-4 hours…CDSL Site is showing the status again as “PRESENT IN PROCESS”

    Reply
    1. Naveen Post author

      Just wait for 2-3 weeks and see what it says. That is the minimum period to show the updated status.

      Reply
      1. Ram

        HI Naveen,

        I submitted KYC form on 2/15. Its almost more than 3weeks. But still my status shows that “PRESENT IN PROCESS”. Do we need to contact KYC to check the status or what to do in this scenario?

        Regards,
        Ram.

        Reply
        1. Naveen Post author

          Somewhere in the comments, the e-mail address of them is mentioned. Mail and them and see what they say.

          Reply
  11. stephen

    This process of KYC really sucks ! I submitted my documents on January 11 and then the receipt of the letter from CDSL to Fidelity and Templeton. The former has allowed me to do fresh transactions but the latter says that since it shows as “present in process’ on CDSL site they cannot action this. They ask me to contact CDSL. So we read that mutual funds are losing investors because of lack of interest from distributors but seeing the arrogant and lousy way that investor service desks of these mutual funds behave with no consistency in service, i am losing interest in investing in them.

    Reply
    1. Naveen Post author

      Yes..I know it is a problem, but you are doing online investment, it is really a time saver where you will be investing in different fund houses without submitting a single physical form. I think if you are giving the proofs to a single fund house, they will allow to do transactions rather than waiting till you get clearance from CDSL. Correct me if I am wrong.

      Reply
  12. Navin

    Agree with whatever Naveen said that we will not have to submit the documents in future. However, there should be a smooth way of processing KYC and this process as usual is lacking of a helpful customer service.

    Reply
  13. Shams

    Dear Naveen,

    Your EMI calculation to be grand all of us. But I would like to know what more details:

    I=PNR (Duration of the loan, total amt of loan, interest rate)

    but here is i found Loan Terms, Payment per Year; i would like to know more details regarding this and difference.

    Thanks
    Shams

    Reply
  14. rajesh

    Dear Naveen,

    PRESENT IN PROCESS-DOCUMENT YET TO RECEIVE.if this status is showing at CDSL than u will not be able to invest online but u can invest through ur dealer(offline method).

    as i have tried this,i have submitted my KYC form got acknowledgment through my dealer,my dealer has invested in my folio using old duly signed form method,but as i use online method to invest i failed.

    because cdsl status is PRESENT IN PROCESS-DOCUMENT YET TO RECEIVE

    Thanks

    Reply
  15. Stephen

    I think that Rajesh is right that one cannot invest online but can try through dealer. I spoke to Templeton Investor Service last evening and they clearly said that they will not process online applications where any of the holders do not have completed KYC.
    What annoys me is (a) the lack of consistency in fund houses in interpreting this – for example how can Fidelity online accept a transaction and Templeton online refuse a transaction for the same set of account holders and then physically accept a transaction (b) how come not a single fund house has listed the process clearly and the number of days that CDSL would ordinarily take to process the papers. Is it not in their interest to educate investors or have they, for so long ,been busy entertaining distributors that they have forgotten about investors ?

    Reply
    1. SURENDRAN OTHAYOTH

      SIR,
      I HAVE APPLIED FOR KYC STATUS 6 MONTHS AGO. SO FAR I HAVE’NT
      GOT ANY REPLY.

      MY PAN NO BQYPS2122L

      Reply
  16. Dinesh

    Dear Naveen,

    I have submitted my KYC form and all documents on 15/12/10 to my mutual fund agent Bajaj Capital, who happens to be POA for KYC as well. After 3 weeks(!) I got the KYC acknowledgement, which is dated 1/1/11 and also states that within 10 working days if I don’t get any communication from CDSL, my KYC can be assumed to have been accepted. But even after 1 month after that, the site is still showing PRESENT IN PROCESS. I stumbled upon your blog and as per your advice given to someone else, I wrote to cvl helpdesk thrice till now – they have never replied. My agent Bajaj Capital is saying it is with cvl and they can’t do anything – they are saying acknowledgement is sufficient for investment through them. But I want to go online from now on.

    What do you advise – the sensex is at a local bottom as it seems, so I am getting quite impatient.

    Reply
    1. Naveen Post author

      Getting lot of queries like, they seem to be taking lot of time. I think it might be due to the loads of applications.

      To invest in shares, CDSL KYC is not necessary. It is only MFs.

      Reply
  17. Dinesh

    Impatience creates doubts and I have a few now:

    1. Did my agent deliberately did not submit some documets so that I am forced to go through them only and they get the brokerage?

    2. Since KYC mandatory from 1/1/11, is there a huge stack of applications with CDSL and therefore the abnormal delay? (2-3 weeks is normal as you say)

    3. If I submit another KYC form with all documents via another agent/POA, what happens while this is still ‘PRESENT IN PROCESS’?

    Thanks and regards,

    Dinesh

    Reply
    1. Naveen Post author

      We can’t do anything other than just waiting for it to be cleared at CDSL. Go to a local MF agent like Way2Wealth and invest there by giving all the proofs.

      Reply
  18. Changappa M P

    I’ve submitted the application on 6/01/2011.Till now the status is Invalid Data in CVL wesite.Please let me know how long will it take to get the KYC ack.?

    Reply
  19. Dinesh

    Dear Naveen,

    Thanks for your informative reply. Just for update, the status is now shown as PRESENT UNDER VERFICATION. What is the final status, something like KYC ACCEPTED – DOCUMENTS VERIFIED?

    Reply
  20. deepak kumar

    i have started a SIP through icici bank and have also submitted the KYC form with required proofs in the bank only.i was told that i will get the acknowledgemnt through mail…do we really get the acknowledgement by mail??????…..will my SIP get rejected as i applied without acknowledgement ???//…,,do reply

    Reply
    1. Naveen Post author

      You will not get into trouble as you have submitted it to the middleman. You will get any acknowledgment for your form, though you can verify it at CDSL’s website.

      Reply
  21. Sumit Modi

    Hi Naveen,
    My current status on CDSL web site say “HOLD – NOT LEGIBLE.”
    Can you please guide me for the meaning of the same and what steps i should take.
    Also, I want to invest in the taxsaver MF. How can I do the same with the current status.

    Reply
    1. Naveen Post author

      Mail them and see what the reason is. If anything wrong, you will get the form back through post to your address.

      Reply
  22. Stephen

    It is extremely disappointing that this process is slow and ambiguous and no one in charge is doing anything about it despite all the investor despair-.
    Just to update my personal case – online investments in Fidelity and DSP Blackrock go through (after I raised a stink with the investor service centres) but Templeton refuse to process online applications as KYC status remains “present in process” almost a month after submission and verification of the documents at the designated PoS. I have no idea if physical investment submissions will be processed but is it not baffling that the same registrar (ie CAMS) is servicing all 3 fund houses, Fidelity, Templerton and DSP and yet each interprets the rules differently.
    Fund houses appear least concerned either to educate investors about the process or to push CDSL to expedite the process. Fortunately all this inaction has unwittingly worked to the advantage of investors with the sharp decline in the markets !

    Reply
  23. sanjay

    I submitted my documents for KYC. the Status shows “PRESENT IN PROCESS”. what does that refer to???? What we have to do next???

    Reply
    1. Naveen Post author

      Nothing to do. Wait for 2 weeks and see what it shows. If everything is okay, then it will show “Verified.”

      Reply
  24. Sumit Modi

    Hi Naveen,
    I submitted my form via HDFC bank and the bank has not provided any acknowledgement letter to me.
    On CDSL website my current status is Verified.
    so, How can I get the acknowledgement letter and Can i ues the print out of the CDSL website for MF investment?

    Reply
  25. Ranju

    Dear Sumit Modi,
    Kindly let me know,When did you submit the application?Because i wanna know How long will it take to get the “verified” status? I too applied through HDFC Bank on 6th of Jan 2011.

    Reply
    1. Naveen Post author

      You will not get any acknowledgment for that. Banks also check KYC status on net and allow you to invest in MFs.

      Reply
  26. Lingaraj Dharwad

    Hi Everyone,

    Please find the contact numbers of CDSL, where you can call up and enquire further:-

    Please call the CVL Helpdesk at : 022 61216908 /61216909/ 61216910 / 61216911 for assistance

    If you want to read through different questions regarding KYC goto http://www.cvlindia.com/faqs01.html and click on Question Bank on he left side.

    Let me know via reply if this has helped you or not.

    Reply
  27. Roopa

    I have submitted KYC form about 3 weeks back and still the staus shows as Invalid data when i check.

    Reply
  28. Sandeep Mohapatra

    Hi,
    i had submitted KYC application through HDFC bank. But it is more than one month & is not done yet. Does it take more time like this ? as beacuse HDFC people are not in a position to help on this. pl revert.
    Regards
    sandeep

    Reply
  29. Stephen

    The CVL site indicates, and I reproduce the extract below, that if you do not get a cancellation, rejection, deficiency intimation within 10 days of submitting your documents to a PoS, then the acknowledgement will serve as basis for investment in mutual funds. So I cannot understand why some mutual funds are insisting on a verified status. My application has just crossed the 40 days mark and the status remains a stoic “present in process”. Why cannot someone let us know who in SEBI we can complain to

    77 How long does it take to get the KYC
    formalities completed?
    When the KYC application and documents are submitted at the
    designated Points of Service, after preliminary verification of documents,
    the KYC acknowledgement will be issued across the counter. The
    acknowledgement is valid 10 working days from the date of issue.
    However, based on final verification of the documents, the same may be
    cancelled / rejected in case of deficiency of documents or incomplete
    information observed in the final verification. A separate communication
    intimating you about the cancellation / rejection of acknowledgement will
    be sent by CVL if your application cannot be processed for any reason. If
    you do not receive any communication from CVL 10 working days after
    you have submitted your documents, you may use the acknowledgement
    to register your PAN and KYC status with Mutual Funds.

    Reply
  30. Shaan

    Hi Naveen,

    I submitted my KYC documents on 24th JAN 2011 through SBI. Still the status on CDL website is “Invalid Data”. How long will it take to change the status?

    Reply
    1. Naveen Post author

      Seems SBI misplaced your documents (Government banks are good at those lazy things). Reapply with the service centers near to your home. Download the excel sheet with address of PoS.

      Reply
  31. Chandru Mansukhani

    Dear Naveen,

    I had submitted my sons application for KYC 2 months ago in end Dec 2010, on checking with CDSL they say that Reliance has sent the batch but more than half the batch has no documents attached and its reflecting “Present in Process Documents Yet to Receive”.They say we need to check back with Reliance.
    Reliance is not responding and the result is that we cannot invest till we get the KYC.
    My question is can we RE APPLY thru another house eg. CAMS as CDSL says that we cannot as the system will not accept another application for the same Pan number.
    If we cannot RE APPLY whats the solution please.

    Reply
    1. Naveen Post author

      Two months is a long time. My brother’s documents also sent back as there was discrepancy and asked to re-apply. The status still shows “Present in Process” and KYC/Modified date has been changed to the document sent back date. He also got an SMS to apply again with documents. So, apply again and see what that date and status shows.

      Reply
  32. Suchita

    hi Naveen Sir,

    I have applied for change of address and name in kYC last months, i checked in CDSL, my name has been changed, how can i find that my address is also changed through online.

    Reply
  33. Vivek

    After almost 2 months, my status reads as ‘HOLD – OK (Pos not verified)’ from ‘Under Verification’ earlier. What does this mean?

    Reply
    1. Raja

      I got my kyc status changed from ‘Under verification’ to HOLD – OK(Pos not verified). I applied it almost 2 months back. What is this status meant? Does it need any attention from myside? Plz advise.

      Reply
      1. Naveen Post author

        Check for their e-mail address in above comments and, mail them and ask for the exact reason.

        Reply
  34. Shaan

    Hi Naveen,

    Thanks for your prompt response.Today my status has been changed to “Present in process- Document Yet to receive”.

    Reply
  35. Kumar A

    Hi Naveen,

    I submitted my documents at a PoS on January 14, 2011 and received an acknowledgment letter right there. Since around 26th January 2011, the CDSL site status has been showing PRESENT IN PROCESS.

    How long do I have to wait for it to become Verified.

    Thank you

    Kumar A

    Reply
  36. GEETA ANAND

    I had applied for KVC but i have not received the number .

    Reply
    1. Naveen Post author

      What number? You will not get any. Go to the above web address, enter your PAN and see what your KYC status is.

      Reply
  37. V.V.NOOKESWARA RAO

    I had applied for KYC on 14/01/2011 through Integrated interprises (I) Ltd which is one of your POS but I have not recieved the KYC Number till date. So Please be take necessary action at your end and issue the KYC No. as early as possible

    Reply
  38. lijesh

    i applied for KYC 10 days before.site shows PRESENT IN PROCESS’.my question is,i applied in mumbai, but all my proof addresses are in KERALA. so i submitted proof papers through agent. is it require to sign any acknowledgment paper and submitted to other office in mumbai.if so, i should wait till my courier boy comes !

    Reply
  39. Kumar A

    I applied for KYC at a POS on 14 Jan 2011. My papers were all OK. The CVL status remained PRESENT IN PROCESS until early March (you suggested on 2nd March that perhaps I should reapply). On 7th March, the status was modified to PRESENT IN VERIFICATION. And finally on 24th March 2011, the status became VERIFIED.

    This means that right now it is taking about 70 days for the KYC status to become verified. Therefore, all those who have been waiting for their KYC status on CDSL may have to wait this long.

    Reply
    1. roshan

      Dear Kumar,
      i think it takes more than 80 days.i’d applied on 03/01/2011. on 25/03/2011,my status has been changed to “front office verification done” from “present in process”.only god knows when it will get verified!

      Reply
  40. Singaramani

    Hi,

    My status is showing “FRONT OFFICE VERIFICATION DONE”. So where and when’ll I get my acknowledgement?

    Reply
  41. Shaan

    Hi,

    Status on CDSL website is shown as “FRONT OFFICE & PHYSICAL VERIFICATION DONE”. What does it mean?

    Reply
  42. Ganesh

    Hi,

    My status is showing “FRONT OFFICE VERIFICATION DONE”. So where and when’ll I get my acknowledgement?

    Reply
  43. AA

    This means it will take at least another four weeks to get “verified” status.

    Reply
  44. Prince

    My status too says FRONT OFFICE VERIFICATION DONE after nearly ONE MONTH..I dont know when I will be able to invest in MFs… Actually wanted to invest in this financial year…that too when the markets were very much low

    Reply
  45. MAKAR

    FRONT OFFICE VERIFICATION DONE
    I dont know what the hell is going on, the site does not provide the meaning of different status.

    Reply
  46. kailash

    My KYC status is showing: Status : HOLD – Proof of Permanent Address not valid.

    Reply
  47. sunaina

    Enter PAN Card no. :

    PAN no. : BHNPK0800P
    Name : SUNAINA KAPOOR
    Status : FRONT OFFICE VERIFICATION DONE
    KYC/ Modified Date : 3/23/2011

    wht does it mean.

    wht is next process for activating mutula funds a/c

    Reply

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