Change in your status

Investors sometimes need to change their status in their investments. Some of the common status changes are resident to non-resident, and vice-versa, minors to major. Any change in status would have to be updated at CDSL Ventures Ltd (CVL) as well as the Mutual Funds. Investors are required to be KYC-compliant and get the same completed by CVL.

Status Change

A form is available at the CVL Website www.cvlindia.com which is used for changing personal details. The section “My New Status” should be filled in and submitted to the Point of Service. If the nationality of the applicant has changed, it should be indicated in the field “My New Nationality”.

The list of supporting documents required including the proof of overseas address, in the case of change to NRI, and proof of local address in the case of change to resident, are mentioned in the form. Investors may submit the same to any Point of Service of CVL.

The change in address details will be automatically changed in the records of the Mutual Funds / Registrars in all folios across all Funds where the KYC Status is updated. All other change details viz. tax status and contact details will have to be communicated separately to the respective mutual funds/ registrars for updation in their records.

Informing the MF

To change the status from Resident to NRI or vice-versa with the mutual fund, a simple request letter duly signed should be submitted informing the fund about the change.

Bank details of Investors who change their status from Resident to Non-resident would have to be updated to NRO. Similarly, for those whose status has changed to Resident, the Savings a/c details would have to be updated in the folio. The complete bank details should be furnished in the request letter and the copy of cancelled cheque of the new bank mandate is to be enclosed.

An investor's current tax status as Resident or NRI is required to be correctly updated for the processing of redemptions. Tax is deducted as source on capital gains for NRIs.

From Minor to Major:

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.

Prior to the minor attaining the age of majority, Mutual Funds will send advance notice to the registered correspondence address advising the guardian and minor to submit an application form along with the prescribed documents to change the status of the account to “major”.

KYC Compliance

An investor who has turned major should complete the KYC formalities. Investors, submitting the KYC application form to a Point of Service (POS) of CVL will get an acknowledgement from the POS which should be submitted to the Mutual Fund along with the below:

A Service Request form / letter duly filled and containing details like Fund, name of the major (investor), folio number, new bank mandate registration form if there is a change in the bank account of the investor. Signature attestation of the investor (major) by the bank manager. On receipt of the documents, the change in status will be effected and the investor can transact freely.

(Contributed by CAMS Viveka, an Investor Education Initiative from CAMS. The views expressed herein are general practices in the Mutual Fund industry and may vary on a case-to-case basis.)

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