Big relief for mutual fund investors: Sebi eases Aadhaar-PAN KYC rules

In a major relief for mutual fund investors, the Securities and Exchange Board of India (Sebi) has removed the requirement to link the Permanent Account Number (PAN) with Aadhaar to obtain “KYC-registered” status for mutual fund transactions.

What is KYC

Know Your Client (KYC) is a mandatory process for banks, fund houses, and stock brokers to verify an investor’s identity before they can start investing. This process ensures that the investment entities know their clients well and can prevent fraudulent activities.