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. DR.RAMESH GUPTA

    Though “FRONT OFFICE VERIFICATION DONE” is not the final status,

    still you can invest in all the mutual funds by taking a printout of your KYC status from CDSL website and enclosing the copy with your application form. I AM TOLD THIS IS 100% LEGAL

    THIS IS ALSO TRUE FOR THOSE INVESTORS WHOSE KYC STATUS IS

    “FRONT OFFICE AND PHYSICAL VERIFICATION DONE”
    I wonder why lawmakers makes term so much complicated?

    Reply
  2. HIRALAL PASI

    FRONT OFFICE & PHYSICAL VERIFICATION DONE

    MAY I KNOW WHAT’S DOES IT MEAN

    Reply
  3. Srinivas

    Dear friends,

    You can Buy/Sell any Mutual Funds with KYC acknowledgment copy, you need not wait for the KYC status to get changed to Verified!!. I did the same, I went to bajaj capital office last month, gave them all the documents, they printed the acknowledgment in next minute. Which they attached for my MF application. AMC’s also accept this, they still print as KYC not okay in their receipts.

    Reply
  4. Shaan

    Hi,

    I applied on 24th Jan 2011.Now My status has been changed to “Verified”.

    Reply
  5. sunaina

    thxs for ur response!

    i got my KYC report thr HDFC bank. but stil on net its nt verified yet.

    i got just a print out of KYC. but i got tht original stamp on it. HDFC back asked me to tk photocopy n deposit thm original copy to thm.thy say in futer u wont b requiring thm print out.

    whn i said may b i want to open mutual funds a/c with other bank thn wht wil i do. he said u dont require this page now just give ur pan card no.

    i requested thm to tk photo copy n give me orignal thn thy were very rude. atlast i managed to get my original copy.

    but i m confuse why thy behaved like tht.

    n can i get more printouts on net.

    Reply
  6. Gunasekaran Mani

    KYC is a important concept” Know your customer” its always better to update it,where ever your investing your money,The KYC form is available with any bank,or call the concern customer service,answer the security questions, they can guide you in a better way

    Reply
  7. DR.RAMESH GUPTA

    FROM THE FOLLOWING WBSITE / LINK YOU CAN COPY

    AS MANY PHOTOCOPIES OF KYC STATUS ,AS YOU REQUIRE,

    ALL ARE EQUALLY AS GOOD AS ORIGINAL, SO DONOT WORRY IF

    SOMEONE DOES NOT RETURN YOUR ORIGINAL KYC STATUS PAGE.

    –Inquiry on KYC – CDSL Ventures Limited
    Inquiry on KYC. Enter PAN Card no. :

    http://www.cvlindia.com/inquiry_kyc01.asp

    Reply
  8. Tarun Matai

    Hi Naveen,
    My KYC Status says- HOLD – OK(Pos not verified) what does it mean. Am i ok to invest now.

    Reply
  9. shaan

    Hi,

    My KYC Status on cvlindia website is showing as “Verified”. How would I get my original KYC Acknowldegment letter???

    Reply
  10. mandar

    Hi

    I want to know what is the message displayed when verification process is completed.

    Reply
  11. S.Basu

    sumitted kyc form through Axis bank. They did not issue any acknowledment letter.My kyc status shows Front office verification done. Will a print outof this, be regarded as proof for my kyc status.?

    Reply
    1. Naveen Post author

      You don’t get a proof for that. KYC status will be checked online by MF houses. You don’t need a proof actually.

      Reply
  12. HUSAIN

    I am happy to see this site that so many knowledgable peoples are around here:If any body help me to answer it will be grateful,
    1)how much money one has to invset in MF to get @Rs500000/- monthly? 2) MF are good or Equity Shares?

    Thanks friends

    Husain
    Dubai UAE

    Reply
  13. sunaina

    My kyc status shows Front office verification done. Will a print outof this, be regarded as proof for my kyc status.?

    Reply
  14. S.Basu

    My KYC status shows Front Office Verification Done. My ELSS investments have been invested over 3-yrs lock-in period.Can I get
    redemption of it now?

    Reply
  15. syan

    Dear all pls tell me any one about my KYC actually i am a nri and i have a nre a/c in hdfc bank since a last 7 years but now before a 6 months i open a tradeing & demat a/c with Geojit broker and my pis a/c with fedreal bank i am doing trading in share. but now before a month my hdfc bank ask me said send me kyc forms along with all supporting documents i sent all documents from here to hdfc bank by registered post they received my documents and from india hdfc bank relationshiop manager call me theu say i received your documents every papers is ok. after that now 1 week is finshed til now i did not receive any mail from hdfc bank and many time i enter my pan details on cvl.com but showing invalid data pls tell me any one did my kyc will be clear now and til now hdfc bank dose not send me any aknowledgement slip or e.t.c pls reply me with many thanks

    Reply
  16. shaan

    Hi,

    My KYC status on CVL India website is showing as “Verified”. How long would it take to update KYC status in Mutual funds once the status on cvl site is “Verified”???? Would appreciate your early relp…

    Thanks..
    Shaan

    Reply
    1. DR RAMESH

      Once status is shown as VERIFIED,THE PROCESS IS COMPLETE.
      NOW TAKE THE PRINTOUT OF CVL WEBSITE AND SUPPLY THE SAME TO YOUR MUTUAL FUND.
      THATS ALL.

      Reply
  17. Sachin K

    My current KYC status is “Hold-OK Pos not varified” what does that mean? Is there any processing pending?

    Reply
    1. Amitava Sinha

      Hi,
      I have applied for KYC some one and half months back. My PAN No. AJCPS7XXXX. Now I see the status is “Hold – OK (Pos not verified)”. Can you please let me know what is the reason of this holding ASAP and what i have to do to complete KYC verification?
      Please note, i initially submitted document to POS Bajaj capital. But when i found nothing is happening i sumitted the documents to ICICI Direct. Please let me know how can i overcome from this situation.
      Thanks in advance,
      Amitava Sinha
      Email: amitavas123@gmail.com

      Reply
  18. husain

    My kyc say
    “FRONT OFFICE VERIFICATION DONE”
    what is the meaning?
    Thanks

    Reply
    1. DR RAMESH

      THIS MEANS THAT NOW YOU CAN INVEST IN MUTUAL FUNDS. FOR THAT PURPOSE YOU JUST TAKE A PRINTOUT OF YOUR STATUS FROM TRHE WEBSITE AND ATTACH WITH YOUR APPLICATION FOR MUTUAL FUND.

      WITHIN 15DAYS YOUR STATUS WILL BE ‘verified” level.

      that is all.

      Reply
  19. S.Basu

    thanks Naveen, at last after 4 months my kyc has got verified. your blog has given lot of help.

    Reply
  20. BALCHANDRA RAO

    my status is showinf FRONT OFFICE VERIFICATION DONE i had applied on 28.02.2011 for KYC.shall i wait for one more month

    Reply
  21. Dear

    Thanks Naveen for the help you are providing through this website. What I want to know is that once KYC status is “verified” in CVLindia, do we have to separately intimate each mutual fund about the KYC verification or is it automatically done based on our PAN number? Secondly if separate intimation is needed, will an email with respect to the same work, or should we necessarily have to send across the printout of our status on cvlindia website. Am asking this because every MF has access to CVLindia website and they can check the KYC status through PAN numbers and update at their end isnt it?

    Reply
    1. Naveen Post author

      Once status is verified in CVL, it is linked to your PAN and you do not need to have proofs attached to the MF applications. They will verify it on the system and pass the application.

      Reply
  22. Dibyaroop Ghosh

    From what I understand from all the posts above is that:

    1. The minimum time to get a status update at CDSL site is 2 weeks (though HDFC Bank told me that i takes 2 days)
    2. AMCs should accept the status as front office verification done as proof that the investor is KYC compliant

    Now my questions;
    1. I have submitted the KYC form at HDFC Bank branch and also 3 SIP applications. I have been told that the apllication will be sent once KYC is done. What if HDFC Bank sends the application before KYC just to meet the numbers. My applications may stand rejected

    2. I have some existing MFs which i had invested a few years ago but now i have kept the units for redemption as and when required. Is CDSL KYC compliance mandatory for redemption of existing MFs?

    Kindly guide

    Reply
    1. Naveen Post author

      From the visitor comments, I understood that when you apply for KYC through through point of service center they will give you acknowledgement and you can use it to invest in MFs. I think for redemption, it is not necessary.

      Reply
    2. Lalit

      Regarding your first question if your SIPs are started even before KYC status done you will be allotted units provisionally and you would not be able to redeem them and they will be confirmed once KYC is verified

      Regarding second question there is no restriction in redemption of prior mutual fund units you can redeem them without KYC

      Reply
  23. ANUJ BHARGAVA

    hi will anybody tell me what does that means “HOLD-POS NOT VERIFIED”?
    I HAD ASKED CVL ABOUT IT VIA MAIL , BUT DOESN’T RESPOND TO MY MAIL.

    Reply
  24. Saurabh

    Hi,
    My status is showing “HOLD – Pan card copy not submitted” Although I’d submitted PAN Card Copy and Address Proof, before this the status was “FRONT OFFICE VERIFICATION DONE”, when I wrote to CVL Helpdesk they told I need to submit PAN Card Copy again, which I sent them scanned copy via email but after a month status is still showing HOLD.

    Has anyone face the same issue?

    Reply
  25. pankaj

    how to know my kyc address
    I have submitted my kyc in 2009
    and last three year i serve many part in india
    So now if i want to know my kyc address what should i do and to change my previous address to current address.
    With regards

    Reply
  26. ameerkhan babu

    I APPLIED FOR KYC IN JAN 2011 AND TILL APRIL END KYC STATUS SHOWS “PRESENT IN PROCESS”,
    BUT FROM MAY ONWARDS IT SHOWS AS “INVALID DATA”
    what i have to do

    Reply
  27. Sudip

    I have submitted KYC Application to PoS on 23rd May’11. My Current KYC Status Shows FRONT OFFICE VERIFICATION DONE. Does it mean that my KYC Compliance done or what message does it shows when anyone is KYC compliance.

    Reply
  28. Vipin

    I have the status as “FRONT OFFICE & PHYSICAL VERIFICATION DONE” from 6-Mar-11 till today.

    How long I have to wait, can somebody please update the helpline line if its handly with you guys.

    Reply
  29. Vipin

    Hi My status changed to Verified now, Now what should I do
    1. Should I take a print out of the screen and submit to MF scheme that I want to invest now.
    2. Should I wait for final letter from them and the certify
    3. Any of the above two
    4. Any other way to do that

    Reply
    1. Naveen Post author

      Just quote your PAN number and they will check the status online and accept your application. No need of any proof that it is verified.

      Reply
  30. Girish Kumar Kaushik

    Hi,
    My KYC is done, but i want to change my address into the KYC. So how can i do that, or under my PAN , I have purchased lots of MF’s, then they will change the address in my MF’s also. The main question is arises that if I change my address in KYC then will it be autometically change into the MF’s also…?

    Reply
  31. Aparna

    My KYC status is showing as “verified”. I have submitted documents for address change to the POS that was mentioned in the CDSL website. How many days does it take for processing? How will I get to know whether the address has changed?

    Reply
  32. Vikram

    There are multiple versions on the validity of Acknowledgement Letter with respect to new investments.My current status is “PRESENT IN PROCESS-DOCUMENT YET TO RECEIVE” after 15 days . It is impossible to trade online as most of the brokers require that PAN is in “Verified” status only in CDSL site ..I checked with Geojit , IDBI, HDFCSec and all of them have opined the same thing..But one strange thing is over phone I was able to place order in HDFCSec!

    Reply
  33. Sanjoy Dutta

    Is the same KYC can be submitted to the state bank for s/b account

    Reply
  34. Sindu

    Hi
    My KYC status says Front office Verification done. what does this mean. How long will it take to be “VERIFIED”

    Reply
  35. DEBADATTA SAHU

    my kyc status is varified.but i have not got any acknowledgement from kyc office.what i have to do.

    Reply
    1. Naveen Post author

      You will not get any acknowledgement. It is just updated online and banks and MFs check the status online only. They won’t ask any physical document.

      Reply
  36. bijay

    With this KYC status you can now start investing in MFs.Within 15 days your KYC status should be as “Verified”

    Reply
  37. m k mohanty

    I am very much thank full to u for your EMI calculator. But there is a huge difference in amount in comparison to bank. Recently I have taken Rs.25,61,000/- housing loan from SBI on 16.04.2011@ 8.75% with calculated EMI of Rs.28111/-(for 15 years). When I contacted bank about the latest interest rate, they informed me that I have to pay Rs.29566/- as EMI due to change of base rate to 10.5% as per terms. But as per your EMI calculator it is supposed to be Rs.28549/-, then how bank is charging more? Could you clarify please?

    Reply
    1. Naveen Post author

      That is an adjustable rate home loan where the rate of interest changes when the market interest rate changes. I don’t know the method of calculation for that. It is for a fixed interest rate throughout the payment schedule.

      Reply
  38. Sanjay Kumar Das

    Hi Sir

    I just wanna know How long take time to verify my KYC document ?
    becoz i have given to executive to all docs.Plz suggest me.

    Reply
  39. Omraj Sharma

    Hi Naveen,
    I’ve applied for the KYC through one POS after one month the status shows “front office varification done” but after two weeks the cvl website displaying msg “invalid Data” pl let me know what it means my application rejected or need to wait for some time.

    Reply
  40. kyc

    Hi,

    i submitted my kyc document on last year through icici mf. still the status on cdsl website is invalid data. how long will it take to change the status?

    my pan no is- AHVPK4872A (please tell me reason for rejection.)

    Reply
  41. VEER DEO SINGH

    Dear Sir,

    i had given a request for change of address in my KYC( PAN no AVYPS8041G) about TWO months back at kANPUR but i am yet to receive anyinformation about it.
    please let me know the status of the above request and do the needful.
    My address has changed from 7/200 SWAROOP NAGAR, KANPUR UTTARPRADESH , INDIA 208002. TO NEELAM APARTMENT, 5TH FLOOR, AMETHIA NAGAR, NAMKUM,PIN-834010
    thanks
    VEER DEO SINGH

    Reply
  42. JAGDISH RAJ

    Reqest for correction in name.
    Name appearing as JAGOISH RAJ may be Corrected as JAGDISH RAJ

    Reply
  43. V. Krishna Naik

    I have investments in various Mutual Funds made prior to calendar
    year 2010. At that time, no KYC norms were required. However, I have
    shown my PAN in all my applications for investments at that time. If I want
    to redeem these investments now, do I have to take a fresh KYC registration?
    Please advice.

    Reply
    1. Naveen Post author

      No need. For fresh investments, it is mandatory. It is a simple and free process, getting it done is always advisable.

      Reply
  44. IMTIAZ PATEL

    NAVEEN,
    I HAVE FILLED IN 3 KYC FORMS.
    1. BUT SINCE MY ADDRESS IS LONG ON MY ADDRESS PROOF. CAN I HAVE A SHORT ADDRESS IN RECORD.
    2. HOW TO CHECK THE STAUS OF KYC. CAN YOU GIVE THE SITE & HOW TO DO SO.
    3. WILL APPRECIATE IF EXPLAINED AT MY EMAIL ID.
    4. THOUGH I HAVE FILLED IN KYC PORMS IT SAY ON THE MF ACCOUNT STATEMENT AS KYC NO APPLIED.

    Reply
  45. prateek

    I want to show the proof for tax rebate.

    thats why i invested in mutual funds for which i made a kyc.

    however at present the kyc status is showing invalid data.

    if at all it gets rejected for some reason, is it going to affect my submission of proof for tax rebate.? will the proof be considered invalid too?

    Reply
  46. Gunjan

    hii
    submitted my KYC with all relevant documents for pan no XXXXX1234P

    KYC for this PAN says invalid data, but for XXXXX1234B it gives my name and says verified.

    my hdfc MF also gives my pan as XXXXX1234B

    what should i do ?

    Reply
    1. Naveen Post author

      How come bank listing your PAN as wrong? Have you updated it in bank records long ago or just now? Go to the bank and get it rectified. Submit all documents for KYC again.

      Reply
      1. P. Saha

        I am already KYC compliant for my MF savings. Can I submit the “Verified” status to my bank for savings account?

        Reply
  47. Gunjan

    thanx for replying

    applied for KYC and the MF last month itself, simultaneously.

    Reply
    1. Naveen Post author

      I was asking about PAN updation in bank records. Anyway, you need to inform to both MF and Bank and update the PAN. Apply for fresh KYC with the correct PAN. Fill the details yourself. Brokers/agents tend to do lot of mistakes in names and address.

      Reply
  48. Sandhya

    I have invested in many of the mutual fund schemes from difference amc’s. Now i have submitted twice for change of address but theres no update on change of address.Kindly suggest as how to check the status and the rejection reason.

    Reply

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