Investing KYD AMFI distributor

KYD: Know Your Distributor process

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Know Your Distributor (KYD) is the AMFI-mandated identity verification and credential check that every mutual fund distributor must complete before receiving an ARN . KYD parallels the well-known KYC (Know Your Client) but applies to distributors rather than investors. The objective is to ensure all ARN-holders are correctly identified, qualified, and traceable.

For aspiring mutual fund distributors, KYD is one of two prerequisites (the other being NISM Series V-A certification) for ARN issuance.

KYD scope

KYD verifies:

Identity

  • PAN card.
  • Aadhaar (where applicable).
  • Passport / driving licence / voter ID as additional ID proof.
  • Recent photograph.

Address

  • Aadhaar / utility bill / passport / rental agreement.

Credentials

  • NISM Series V-A certificate.
  • Educational qualifications (Class 10 minimum; Class 12 or higher preferred).

Banking details

  • Cancelled cheque for commission deposits.
  • Bank statement.

Process

Facilitators

AMFI has empanelled two facilitators for KYD:

  1. CAMS (Computer Age Management Services).
  2. KFin Technologies (formerly Karvy Computershare).

Both serve as the operational front-end; AMFI is the underlying authority.

Steps

  1. Application submission: ARN applicant submits forms + documents to CAMS or KFin.
  2. Document verification: RTA verifies originals against copies.
  3. Biometric capture: Historically, biometric (fingerprint) was captured. Per AMFI biometric discontinuation (Circular 27) , this requirement was discontinued.
  4. Photograph capture: Recent passport-size photograph.
  5. Fee payment: Rs 1,500 to Rs 1,800 (approximate; subject to AMFI fee schedule).
  6. Record submission: Verified documents submitted to AMFI for ARN issuance.

Timeline

KYD verification typically completes within 7 to 15 working days from submission.

Re-KYD

Periodic re-KYD is required:

  • Cycle: Aligned with ARN renewal (every 3 years).
  • Scope: Re-verify identity, address, credentials.
  • Trigger: Renewal window opens 3 months before ARN expiry.

KYD for individual vs corporate ARN

Individual ARN

  • Single KYD verification for the individual.

Corporate ARN

  • KYD verification of:
    • The legal entity (PAN, GST, address).
    • Each authorised signatory.
    • Each EUIN -holder employee on staff.

See also

External references

References

  1. AMFI KYD guidelines.
  2. SEBI (Mutual Funds) Regulations 1996.

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