Know Your Distributor (KYD) norms for Mutual Fund Distributors
AMFI (vide circular 35P/ MEM-COR/ 13/ 10-11 dated August 27, 2010 and 35P/MEM-COR/21/10-11 dated December 9, 2010) has introduced Know Your Distributor (KYD) norms for Mutual Fund Distributors with effect from September 1, 2010, requiring the distributors to submit mandatorily identity proof, address proof, PAN and bank account details with proof.
KYD norms will be applicable for fresh ARN registration and ARN renewal effective from September 1, 2010. The existing ARN holders would also be required to comply with KYD norms within 6 months i.e. by end of February 2011, failing which AMCs shall suspend payment of commission till the distributors comply with the requirements.
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