FREQUENTLY ASKED QUESTIONS

FREQUENTLY ASKED QUESTIONS

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Additional Information

KYC

KYC Requirement
New KYC Norms
Important KYC Update

CHILD/ MINOR

Introduction

THIRD PARTY PAYMENTS

Introduction
Exceptional Situations
Declaration Formats
Multiple A/c registration
Identification and rejection

KYC

KYC Requirement

KYC is an acronym for "Know Your Customer", a term commonly used for Customer Identification Process. Know Your Customer (KYC) norms are now mandatory for ALL applicants/investors (including existing investors and joint holders) to make investments in mutual fund irrespective of the amount of investment.

KYC is applicable for which type of transactions?

» New / Additional Purchases.
» Switch Transactions.
» New SIP/MICRO SIP Registrations (including SIP related products) received from effective date.
» New STP Registrations (including STP related products like trigger facilities) received from effective date.
» New DTP Registrations (including DTP related products) received from effective date.

It is clarified that KYC norms are applicable on a prospective basis. For existing SIP / STP / DTP registrations (and similar facilities), KYC norms as applicable on the date of acceptance of the request are applicable, unless specifically mentioned.

We strongly recommend all our existing Investors to complete their KYC formalities and submit the KYC Acknowledgement letter along with a list of the folio(s) to our registrars for updation so that they can continue to invest smoothly.

Customers can also send us an email on [email protected] mentioning their folio numbers and attaching the scanned image of KYC acknowledgement received from KRAs like CISPL or CVL.

After verification, the KYC status shall be updated w.r.t. to the said folio(s) and investors shall be able to invest in schemes.

With effect from January 01, 2012 (KRA guidelines by SEBI):

To bring uniformity in securities markets, SEBI vide its circular MIRSD/SE/Cir-21/2011 dated 05th October 2011 has prescribed uniform KYC form and supporting documents to be used by SEBI registered intermediaries such as DPs, MFs, AMFI, PMs, Collective Income Schemes and Venture Capital Funds.

For this purpose, KYC registration is centralized through KYC Registration Agencies (KRAs) registered with SEBI. Thus each investor has to undergo a uniform KYC process only once in the securities market and the details would be shared with other intermediaries by the KRAs.

Any customer desirous to open an account or transact with DSP BlackRock Mutual Fund should either get the KYC done through DSP BlackRock Mutual Fund or should produce a valid acknowledgement issued by KRA. However, DSP BlackRock Mutual Fund mutual fund may choose to carry out enhanced due diligence based on its internal client due diligence policy.

All application/transaction requests are liable to be rejected if the KYC requirements as applicable on the date of investment are not complied.

Investors/unit holders should further note that the KYC norms may undergo changes from time-to-time. Hence, investors/unit holders are requested to apprise themselves about KYC applicability before submitting their applications/transactions to avoid rejections.

Investors may contact their investment advisors orcontact us at any of the Investor Service Centres (ISCs) of the Fund or Registrar to know more about KYC applicability and process.

For more details on KYC, investors can also visit KRA agencies’ website like www.camskra.com or www.cvlkra.com.

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New KYC Norms

Key changes in the KYC norms, effective January 01, 2012:

In-Person Verification (IPV) - Information provided in the KYC form has to be verified in person by the AMC, its Registrar and Transfer Agent (RTA) or distributors who are AMFI / NISM certified and compliant with Know Your Distributor (KYD) guidelines.

KYC Application Forms - Some changes have been made in the KYC application form and are listed below for ready reference:

Individual investors:

» Marital status to be provided.

» Proof to be submitted for PAN exempt investors has been listed.

» Income details - the slabs have been modified and an option of providing net worth as on a recent date in lieu of gross annual income has been provided.

» Proof of Address and Identity – there are some changes in the list of acceptable documents.

Non-individual investors:

» Place of incorporation, date of commencement of business have been added.

» Income details – the slabs have been modified, and additional information on the net worth as on a recent date has been sought. Proof to be submitted for PAN exempt investors has been listed.

» Following details of Promoters / Partners / Karta / Trustees / Whole time directors are required: Name, PAN with proof, DIN (for directors) / UID, if any (for others), address proof and photographs.

» Photograph of any one of the authorised signatories on the KYC application form.

» Copy of the balance sheets for the last 2 financial years and thereafter to be submitted every year.

» Copy of latest share holding pattern.

Exemptions/Clarifications to PAN:

– For the following set of customers / transactions, while PAN is not mandatory, KYC requirements requirements are necessary:

» Investors residing in the state of Sikkim.

» Lump sum investment (fresh purchase and additional purchase) and SIP installments by an investor in rolling 12 months period or financial year i.e. April to March does not exceed Rs. 50,000/-.

» Transactions undertaken on behalf of Central Government and/or State Government and by officials appointed by Courts e.g. Official liquidator, Court receiver etc.

» Such customers also need to get their KYC done by filling up the KYC forms and all necessary details, in lieu of PAN. The application form from such customer should be accompanied with duly filled KYC form or an acknowledgement of KYC.

Impact on Investors:

Existing and new investors who have successfully completed the KYC process with CVL-KRA for investments in mutual funds (in the old format) - No action is required and they can continue to use the KYC acknowledgment issued to them for mutual fund investments. However it will not be applicable for investments with other intermediaries in the securities market.

» Investors who have NOT completed the KYC process for investments in mutual funds (in the old format) - New uniform KYC norm as explained above is applicable and the KYC acknowledgment issued by the KRAs like CVL or CISPL can be used for all investments in securities market, including mutual funds.

» Investors who have completed KYC process through any of the intermediaries such as DP, PMS, etc., on or after 1st January, 2012 and hold a valid acknowledgement issued by KRA for the same may invest with any of the mutual funds with the same acknowledgement. However, a mutual fund may choose to carry out enhanced due diligence based on its internal client due diligence policy.

» New KYC form can be submitted by an investor along with an investment application (purchase / additional purchase / switch / SIP mandate forms) and not on a stand-alone basis, as was possible till 31/12/2011. However, an investor who has investments in any mutual fund and is not KYC compliant may submit new uniform KYC form to the mutual fund by quoting the folio number.

» As per clause 1.iv of the SEBI circular dated December 23, 2011 the intermediary shall carry out KYC when the client chooses to trade / invest / deal through the intermediary. Therefore, it is essential for an intermediary to have the client account opening form duly signed by the investor along with the KYC documents in order to proceed with carrying out the KYC, uploading the KYC information on the system of the KRA, and forwarding KYC documents to the KRA. This may not necessarily be accompanied by a payment instrument for investments which can happen subsequent to account opening.

Mutual fund distribution platforms using electronic mode of transaction submission should get the KYC of first-time investors initiated through any of the mutual funds by filling up mutual fund’s account / folio opening form. Once the investor’s KYC gets triggered with a KRA, the investor is free to transact with any mutual fund.

In-Person Verification (IPV) and Document Verification/Attestation:

IPV and Document Verification shall be conducted only by the following:

» Employees of AMC

» RTA appointed by the AMC

» KYD Compliant Distributors, with valid ARN

» Authorized official of a scheduled commercial bank, only in case of Direct applications

The following needs be recorded on the KYC form:

» Name of the person doing attestation of documents/IPV, his designation, organization, his signatures and date of IPV

» ARN code and name of the distributor in case of attestation/IPV done by a valid ARN holder

» Where IPV/Document verification is done by a sub-broker

» The sub broker ARN code should be KYD compliant, with valid ARN

» The sub broker should additionally affix the following three details on the KYC application form

» Sub-broker's ARN code,

» ARN code of the main distributor

» Sub broker code allotted to the sub-broker by the main distributor

Attested copies of the KYC documents can be accepted, if the same are attested by the list of people authorised to attest the documents, as mentioned on the KYC forms.

Special note for distributors:

» In case of attestation/IPV done by a sub broker, the main distributor under whose code the folio is opened shall also be responsible for the KYC process, including the IPV, conducted by the sub broker

» Distributors undertaking verification of documents and the IPV shall exercise due care and diligence while validating the documents and verifying the identity of the client in-person

» Various due diligences to be exercised by the distributors (including sub-brokers who are registered with AMFI) while conducting the KYC process will form part of Code of Conduct prescribed for distributors

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Important KYC Update

KYC Update: for New Investors of DSP BlackRock Mutual Fund

New investors who invest for the first time with DSP BlackRock Mutual Fund after November 30, 2012, and

» Who have completed KYC requirements prior to January 01, 2012, through CDSL Ventures Ltd. (CVL), Whose KYC status on CVL website (www.cvlkra.com) reflects as "MF - VERIFIED BY CVLMF" as on date of investment with DSP BlackRock MF.

» Such customers need to provide certain 'missing KYC information' as and when they invest for the first time with DSP BlackRock MF after November 30, 2012

What is 'missing KYC information' that needs to be provided?

Pursuant to SEBI Circular issued on April 13, 2012, all intermediaries are required to obtain 'certain missing KYC information' afresh as and when new clients intend to invest/trade/deal with the intermediary.

This is the KYC information that has been prescribed by SEBI as part of minimum KYC requirements vide SEBI circular dated 5th October 2011, but was not prescribed earlier for any intermediary including Mutual Funds.

In case of Individuals are, details to be taken afresh are:

» Father's / Spouse Name,
» Marital Status,
» Nationality,
» Gross Annual Income Or Networth as on recent date
» In-Person Verification (IPV)

In case of Non Individuals, full KYC needs to be done afresh due to significant and major changes in KYC requirements

How to update the 'missing KYC information'?

» In case of Individuals, a 'KYC details Change Form' is available. In this form Section B is mandatory as well as IPV click here to download KYC details Change Form for Individuals.

» In case of Non Individuals, full KYC needs to be done afresh. Please click here to download KYC form for Non Individuals.

Duly filled form can be submitted to any office of DSP BlackRock Mutual Fund accompanied with purchase application form.

Is this requirement applicable to all investors, Existing and New? What are the exceptions?

» It is clarified that currently above mentioned requirement is only if the investor is a new customer to DSP BlackRock Mutual Fund and is investing after November 30, 2012

» In other words, an existing customer of DSP BlackRock Mutual Fund (who has completed KYC formalities prior to January 01, 2012 through CVL) may continue to transact with the fund till further notice.

» Further, if the customer has already updated KYC information through some other intermediary and the KYC status by CVL KRA is updated as "Verified by CVL KRA", there is no need to again update the information through DSP BlackRock Mutual Fund. In such cases, customers may attach a KYC confirmation letter available from CVL-KRA website.

When should the customer required to provide ‘missing KYC information?

The customer is required to provide missing KYC information in following scenarios:

» New Investors: When the customer chooses to invest with DSP BlackRock Mutual Fund for the first time.

» Existing Investor: When the customer needs to update any of the KYC information provided earlier, like address, email id etc (example: customer wishes to update the communication address provided as part of KYC prior to January 01, 2012).

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CHILD/ MINOR

Introduction

Child/Minor Investments:
» Where the account/ folio is opened on behalf of a child who is a minor,
» The minor shall be the first and the sole holder in an account.
» There shall not be any joint accounts with minor as the first or joint holder/s.
» Guardian in the folio on behalf of the minor should either be a natural guardian (i.e. father or mother) or a court appointed legal guardian.
» The guardian should provide information on his relationship with the minor as father, mother or legal guardian by ticking appropriately on the application form.

Mandatory documents:

  1. Date of birth of the minor along with photocopy of any of the supporting documents as enumerated below should be submitted while opening the account on behalf of minor:
  2. Birth certificate of the minor, or
  3. School leaving certificate / Mark sheet issued by Higher Secondary Board of respective states, ICSE, CBSE etc., or
  4. Passport of the minor, or
  5. Any other suitable proof evidencing date of birth of the minor.

In case of natural guardian, an additional document evidencing the relationship should be submitted if the same is not available as part of the document/s supporting date of birth proof, as mentioned above.
In case of court appointed legal guardian, supporting documentary evidence should be submitted.

Minor attaining majority
When the units are held on behalf of the minor, the ownership of the units rests with the minor.
A guardian operates the account until the minor attains the age of majority. On attaining majority, the status should be updated by submitting the following documents:
Minor Attaining Majority Form, duly filled and containing details like name of major, folio numbers etc
New Bank mandate where account changed from minor to major ,
Signature attestation of the major by a manager of a scheduled bank/ Bank Certificate / Letter
,
KYC (CVL Standard KYC) of the major.
*This is a part of the said form.

Impact on Registered Systematic Transaction
Standing instructions like SIP, SWP, STP are registered in a minor folio only till the date of the minor attaining majority, even though the instructions may be for an extended period.
When the minor is approaching the age of majority, we will send letters advising the guardian and the minor to submit the form along with prescribed documents to change the status of the account/folio to "major".
All SIP, STP, SWP and any other standing instruction registered in the minor's account will be suspended if the documents are not received by the date when the minor attains majority.
The account will be frozen for operation by the guardian on the day the minor attains the age of majority and no transactions shall be permitted till the documents related to minor turned major are received.

Change in guardian
When there is a change in guardian either due to mutual consent or demise of existing guardian, the following documents should be submitted for registering the new guardian:

Request letter from new guardian,

No Objection Letter (NoC) or Consent Letter from existing guardian or Court Order for new guardian: In case existing guardian is alive.

Copy of the Death Certificate (duly notarized or attested) of the deceased guardian, where applicable. The attestation may also be done by a special executive magistrate; AMC authorized official or manager of a scheduled bank.

The new guardian must be a natural guardian (i.e. father or mother) or a court appointed legal guardian.

In case of natural guardian, the document evidencing the relationship should be submitted

In case of court appointed legal guardian, supporting documentary evidence should be submitted.

Bank attestation attesting the signature of the new guardian in a bank account of the minor where the new guardian is registered as the guardian.

KYC of the new guardian.

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THIRD PARTY PAYMENTS

Introduction

DSP BlackRock Mutual Fund does not accept mutual fund subscriptions with Third Party Payments.

We advise investors to issue subscription payments only from the bank account of the first unit holder or submit additional documents as enumerated in specific situations.

Any application accompanied with third party payment is liable for rejection without any recourse to the applicant or investor.

What is a 'Third Party' payment?
» When a payment is from a bank account other than that of the beneficiary investor, the same is referred to as a "Third Party Payment".
» In case of mutual fund subscriptions, the first unit holder is considered as the beneficiary investor, even if there are joint unit holders.
» In case of payments from a bank account jointly held, the first holder of the mutual fund subscription has to be one of the joint holders of the bank account from which the payment is made.

Will DSP BlackRock accept subscriptions with 'Third Party' payment?
» In compliance with AML/KYC requirements and AMFI Best Practice Guidelines Circular No.16/2010-11, DSP BlackRock Mutual Fund has taken adequate steps and does not accept subscription applications accompanied with Third-Party payments.
» Avoidance of such applications also mitigates the risks associated with such transactions in the interest of investors.

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Exceptional Situations

Subscriptions with Third-Party payments will be accepted only in certain exceptional situations as enumerated below.

In each situation, certain additional mandatory documents are required to be submitted with every purchase application as mentioned below:

Payment by Parents / Grand-Parents / Related persons on behalf of a minor (other than registered guardian) in consideration of natural love and affection or as gift:
» Purchase amount value should not exceed Rs.50,000/- (each purchase or each SIP installment):
» KYC of Registered Guardian (of the minor),
» KYC of Person making the payment (Parent/Grand-Parent/Relative),
» Declaration signed by both in the specified format. Click here for the format.

Payment by an Employer on behalf of Employee under Systematic Investment Plans or Lump-sum / One-time subscription, through Payroll deductions:
» KYC of the employee who is the beneficiary investor
» KYC of employer (making payment)
» Declaration signed by the employer in the specified format. Click here for the format.

Custodian on behalf of an FII or a Client:
» KYC of the Investor,
» KYC of Custodian
» Declaration signed by the Custodian in the specified format. Click here for the format.
Investors should make a note that each case mentioned above, Mutual Fund Common Standard KYC of investor and person making payment is mandatory irrespective of amount and the declaration should accompany the purchase application, as mentioned above.

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Declaration Formats

For your convenience, formats of declarations in various situations are readily available here:

» Demand Draft: Certificate from the Issuing banker. Click here.
» Payment by Parents / Grand-Parents / Related persons on behalf of a minor (other than registered guardian).Click here.
» SIP / Lumpsum Payroll Deductions: Declaration by the employer. Click here.
» Custodian on behalf of an FII/client: Declaration by Custodian. Click here.

Important Note: The declarations, as applicable, should accompany each purchase application.

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Multiple A/c registration

Towards investor convenience and to help investors avoid submitting documents each time with every purchase, the fund has introduced the facility to register "Multiple Bank Accounts".

Using this facility, investors can register their various bank accounts in advance. These registered bank accounts will be used to identify subscriptions payments and will also be used towards redemption or dividend payments.

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Identification and rejection

It is mandatory for investors to ensure the following details. (Please refer to important note below)

A. Mention the details of the bank account from where the payment for subscription is made in the designated area of the application form / common transaction form or on the transaction slip. The mandatory details to be mentioned are:

» Bank account number,
» Bank name and
» The cheque / demand draft number.
B. Name of the first unit holder/applicant in mutual fund folio should be pre-printed as one of the bank account holders on the payment cheque.

If first unit holder/applicant name is not pre-printed on payment cheque, the investor should submit the following additional documents, with each purchase application.

  1. Cheque Payments: If the name of the first holder is not pre-printed on the cheque, investors should submit any one of the following documents to establish that the payment is made from the bank account of the first unit holder:
  • Bank Pass Book copy,
  • Bank Statement copy, or
  • Letter from bank

Tip: Investor are strongly advised to avail "Multiple Bank Accounts Registration" facility and register their various bank accounts with the fund and avoid submitting additional documents every time.

  1. RTGS / NEFT / Fund Transfers: Investors should submit a copy of the instruction to the bank containing the account title, account number and all account holders debited for the remittance.

  2. Payments via Demand Drafts: Incase of Investments through Demand Drafts, the investors can submit any of the following supporting:

» Proof of debit to the investor's bank account in the form of a bank manager's certificate with details of account holder's Name, bank account number and PAN as per bank records, if available.Click here for the draft of the certificate
» Copy of the acknowledgement from the bank, wherein the instructions to debit carry the bank account details and name of the investor as an account holder are available.
» Copy of the passbook/bank statement evidencing the debit for issuance of a DD
Any of the above will be a valid supporting document in such subscriptions.

It must be ensured that such bank account number debited to issue Demand Draft is the same as the one of the registered bank account mandate(s) with the fund or the bank details mentioned in the application form.

Please note that a demand draft issued against cash payment is not accepted by the fund.
Important Note: If the details and additional documents, where necessary, as mentioned above are not submitted with each subscription application, the application will be deemed to be through a "Third Party" payment and is liable to be rejected without any recourse to the applicant/investor. In case the funds are transferred to the mutual fund prior to rejection of the subscription, additional documents / details with respect to the investor and the payment may be sought prior to initiating a refund.

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