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FAQ'S

FAQs

Central Know Your Customer (CKYC) (NEW)

1)What is CKYC?

CKYC refers to central KYC (Know Your Customer), a new initiative by Government of India. The aim of this initiative is to have a structure in place which allows investors to do their KYC only once before interacting with various entities across the financial sector. CKYC will be managed by CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest of India), authorized by Government of India to function as Central KYC Registry (CKYCR). The objective of CKYCR is to reduce the burden of producing KYC documents and getting those verified every time when the investor enters into a new relationship with a financial entity. Thus, CKYCR will act as centralized repository of KYC records of investors in the financial sector with uniform KYC norms and inter-usability of the KYC records across the sector.

2)What is CERSAI?

Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) is a central online security interest registry of India authorized by Government of India to act as and to perform the functions of the Central KYC Records Registry under the PMLA (Prevention of Money-Laundering) rules 2005, including receiving storing, safeguarding and retrieving the KYC records in the digital form for a client.

3)How can I complete my KYC formalities?

You may submit the CKYC form at any of our branches or you may choose to complete your KYC formalities online using the facility provided on our website.

4)What is the difference between KYC and eKYC?

KYC - is the process in the Mutual Fund industry whereby the identity of an investor is verified based on written details submitted on a form, supplemented by an in-person verification process done by the ISC personnel. Once the verification is done successfully, the relevant investor data is entered into the KRA Registration Agency (KRA) system and subsequently uploaded to their database.

eKYC is KYC done with the help of an investor's Aadhaar number. While doing the eKYC, the authentication of the investor's identity can be done:

(a) Via OTP (Limits investments to Rs 50,000 per year per mutual funds and mandates investments via the online electronic mode)

(b) Via Biometrics (No limits on the investment amount here unless those specifically imposed by the scheme / Fund House). This data is uploaded into the records of the KRA.

5)What is the process for completing my eKYC formalities online?

The process flow is as under:

a. Enter your PAN, Aadhaar, Email ID and Mobile Number for validation

b. Post validation, your identity and address details will be fetched from the UIDAI database.

c. Enter some additional information as required

d. Submit your information and the process is done.

6)Is the information that is currently sought on the current KYC form and the new CKYC form, the same?

No. CKYC requires additional information (for e.g. investor's maiden name, mother's name etc) to be collected and submitted to CERSAI for completion of the CKYC formalities of an investor.

7)What is 'KYC Identification Number'?

KYC Identification Number (KIN) is a 14-digit number allotted by CERSAI to an investor who has completed his / her CKYC formalities. This number should be mentioned each time the CKYC details are required to be accessed by any intermediary.

8)From when is the CKYC applicable and what procedure do I need to follow?

CKYC compliance is applicable for investments received from February 1, 2017 onwards. You need to note the following:

  • New investors (investors who are not KYC compliant) will have to mandatorily submit the CKYC form along with the investment application. If the investor has filled the old KYC form in lieu of CKYC form, he will have to submit additionally the Supplementary CKYC form along with the old KYC form.
  • Existing investors (investors who are KYC compliant) can continue making investments without any change in the current process.
  • 9)Is CKYC compliance mandated for all categories of investors?

    No. Currently, CKYC is applicable only to Individuals (both Resident Individuals and Non-Resident Individuals (NRIs)).

    10)What about PAN? Is it mandatory?

    a)Investors who have a valid Permanent Account Number (PAN) need to provide the same for CKYC compliance.

    b) Investors, who do not have a PAN, need to submit alternate documents (refer CKYC form for details). However, such category of investors can invest (including SIPs) upto Rs. 50,000 only per Mutual Fund in a rolling 12-month period or in a financial year i.e. April to March.

    c) Investors exempt from submission of a PAN:

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

    ii) Investors residing in the state of Sikkim

11)What are the documents to be submitted for completion of CKYC formalities?

You need to submit the following documents:

a)Duly filled and signed CYC / Old KYC form + Supplementary CKYC form

b)One proof of Identity (self-attested copy)

c)One proof of Address (self-attested copy)

d)One photograph in case of CKYC form

12)Please elaborate on the documents to be submitted as proof for the information provided on the CKYC form.

You need to submit both proofs of identity as well as address.

  • For identity proof, you may submit any one document - PAN/ passport / voter ID/ driving license / Aadhaar card / NREGA job card / any other document notified by central government
  • For address proof,you may use the same proofs as submitted as identity proof (except the PAN, since that does not specify the address). If your permanent address is different from the correspondence address, then you need to submit proof for both the addresses.

Copies of all documents that are submitted need to be compulsorily self-attested by the applicant and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents. For more details, please refer to the "instructions / guidelines" over-leaf on CKYC / Supplementary CKYC form.

13)Is date of birth mandatory to be provided for CKYC compliance?

Yes, the date of birth is mandatory information required for processing of your CKYC application.

14)How would I know that my CKYC application is successful?

KIN is being allotted by CERSAI to investors whose CKYC application is found to be valid. An SMS / email will be sent by CERSAI to the registered mobile number of the investor as soon as the KIN is generated at their end.

15)I do have an email ID / mobile number. How will the KIN be informed to me?

Upon generation of a KIN, CERSAI as a process will communicate the same vide SMS / email provided on the CKYC form. In the absence of both the details, no communication will be sent by CERSAI. Such an investor needs to contact the entity who had processed the CKYC form. You need to provide the details of the supporting documents (for e.g. if PAN copy was submitted as identity proof, then you would need to provide the PAN) that was submitted to the said entity. It is advisable that you provide an email ID / mobile number on the CKYC form so that you do not miss out on any important communication sent by CERSAI to investors.

16)What is the format of the SMS that would be received by me?

A sample copy of the SMS that would be received by you from CERSAI is reproduced below for your reference.

17)If my CKYC application is rejected / fails, will I be informed about the same?

If the CKYC application is not processed / rejected for some reason, no intimation will get sent to the customer from CERSAI. The entity processing your CKYC application shall be aware of such rejections and can approach in case of any queries.

18)Is CERSAI responsible for validation of investor data?

CERSAI will verify the details as against the supporting documents submitted by investor. However, the onus of doing the CKYC of a customer properly and correctly lies with the entity doing the CKYC.

19)How do I check the CKYC status online?

Currently, such an option is not available. If the investor is allotted the KIN, it is confirmation that the investor is CKYC compliant.

20)I have already obtained a KIN. Do I need to submit any more documents for CKYC compliance?

Investors who are already allotted a KIN are considered as CKYC compliant. Such investors do not need to submit any more documents for CKYC compliance. However, please ensure to keep the KIN details readily available as it needs to be mentioned on the application form at the time of investing.

21)Within how many days will I receive the KIN?

The KIN will be allotted by CERSAI within 2 - 3 working days.

22)I have been allotted a folio for the initial purchase submitted to you along with my CKYC form. However, I have not received the KIN yet. Can I submit another purchase till such time?

Yes, we will be able to accept the same provided you have mentioned PAN details on the CKYC form submitted earlier.For more information, you may contact your distributor, if any, or visit our Investor Service Centers (ISCs).

Subscription Related FAQs

  • What is Net Asset Value (NAV) of a scheme?

The Net Asset Value (NAV) of a mutual fund scheme applies to the units of that scheme. It is defined as the market value, in Rupees, of one unit of that Mutual Fund Scheme. It is simply the unit's share of the market value of the scheme's holdings of assets. 
NAV is calculated and published as per regulations. Investors can use the NAV to purchase, redeem or track value of units in a Mutual Fund. 
. e.g. If the value of all the securities in a scheme is Rs. 10,000 and the total number of units issued = 1,000 the NAV per unit will be 10,000/1,000 = Rs. 10. 
 

  • How can I purchase units of Canara Robeco Mutual Fund?
    There are three options for purchasing units of our Mutual Fund: 
  • Directly by submitting physical transactions to the fund house,
  • Through the stock exchange platform
  • Through internet/ online transacting facility. Click here to invest online

1. Directly by submitting physical transactions to the fund house:

You may procure an application form from your investment advisor or from any of our official points of acceptance. Alternatively, you may download it from our website www.Canara Robecofund.com. Click here to download the form now. 
For more details about the schemes, investor's rights & services, risk factors, etc, you should refer to the Scheme Information Document (SID) and Statement of Additional Information (SAI) before investing. You can obtain these documents along with the Key Information Memorandum (KIM) and application form as mentioned above. 
Attach a cheque for the amount you would like to invest. The name and account number of the sole/first unit holder should be printed on the cheque
The completed application can be submitted at any of official points of acceptance.

 

2. Through the Stock Exchange Platform: 
Canara Robeco Mutual Fund offers CANARA ROBECOMFOnline and CANARA ROBECOMFMobile, through which you can transact from anywhere and at any time. 
Investors can approach a trading member of BSE or NSE registered with stock exchange as participant (& who is also registered with AMFI as Mutual Fund Advisor and with Canara Robeco MF) to avail transaction facility through stock exchange platforms. 
For further details, please browse through the 'Stock Exchange Transactions' section.

 

3. Through internet/ online transacting facility. 
Canara Robeco Mutual Fund offers CANARA ROBECOMFOnline and CANARA ROBECOMFMobile, through which you can transact from anywhere and at any time. 
For more details on CANARA ROBECOMFOnline and CANARA ROBECOMFMobile facility, refer to Online Section within the FAQs or contact us

 

  •  What documents do I need to submit along with my initial application to buy units in Canara Robeco Mutual Fund?
    The following is a list of documents that are needed by investor(s) who is/are investing in our fund for the first time. Subsequent investments do not need these documents. 

 

Documents

Individual / HUF

&NRIs/ PIOs

Investments through POA

Companies

Partnership Firms

Trust/ Societies

FIIs

KYC letter (of all holders)

 

 

 

 

 

 

 

Bank account proof (name and account number printed of the first unit holder)

 

 

 

 

 

 

 

Power of Attorney (Notarized)

 

 

 

 

 

 

 

PIO / OCI Card

 

 

 

 

 

 

 

List of Authorised Signatories with Specimen Siganture(s)

 

 

 

 

 

 

 

Board Resolution/ Authorisation to invest

 

 

 

 

 

 

 

Overseas Auditors Certificate

 

 

 

 

 

 

 

FIRC (where payment is made by DD from NRE or FCNR A/c )

 

 

 

 

 

 

 

 

FAQ's on FATCA / CRS

What is FATCA?

FATCA stands for the Foreign Account Tax Compliance Act. It requires foreign financial institutions (FFI's) to provide the Internal Revenue Service (IRS) with information on certain investments of US persons invested in accounts outside of the US and for certain non-US entities to provide information about any US owners.

 

Are there any other regulations like FATCA which will apply to Canara Robeco Mutual Fund?

Yes, Common Reporting Standard (CRS) which is similar to FATCA, is a global level common standard for automatic exchange of financial account information. CRS has been developed by the OECD in close cooperation with the G20 countries and the EU. Under CRS, India has signed a multilateral agreement that would pave the way for effective exchange of financial account information on an automatic basis among signatory countries.

 

What is the purpose of FATCA and CRS?

The purpose of FATCA and CRS is to aid automatic exchange of information between bilateral treaty partner countries about account-holders / investors maintaining accounts in foreign jurisdictions and also to prevent citizen or resident of countries / territories outside India, whether individuals or specified entities, from using banks and other financial institutions to avoid taxation on income generated from all offshore accounts. FATCA and CRS both, obligates such financial institutions to report information about persons from these countries / territories having accounts with them. 

 

How does the law of another country become applicable to me?

In case of FATCA and CRS, as mentioned previously, the Government of India has signed IGA and MCAA respectively for their implementation. Under the pact, India would be obligated to get its financial institutions to share financial account information of accountholders who are tax residents in any of the signatory countries. Likewise, India would also get similar information through financial institutions of such treaty countries. 

 

Has any Indian Authority defined rules for implementation of FATCA and CRS?

Yes, as mentioned earlier, CBDT has already notified rules and guidance note for implementation of FATCA and CRS. The rules framed are called the Income tax (11th Amendment) Rules, 2015.

 

Who will be covered under the purview of FATCA and CRS?

As per the CBDT rules and guidance notes, investors have been broadly categorized as Individual and Non-Individual (Entity) investors. Existing and new investors have been categorized based on the date the folio(s) was / were opened. Further, classification of the existing investors is based on the value of the investment as on the specific date. For identification and reporting purposes existing individual investors are further classified into high value and low value individual investors. Likewise, entity investors are also classified into above threshold and below threshold entity investors. Accordingly, existing investors with indicias and all the new investors would be covered under the purview of FATCA and CRS (for detailed classifications refer to further FAQs):

 

Who is an Existing Investor under FATCA and CRS?

Refer to the below table for classification of existing investors under FATCA and CRS.  

 

Existing Investor

FATCA

CRS

Investors who have opened folio on or before June 30,2014

Investors who have opened folio on or before June 30,2014

 

High Value

Low Value

High Value

Low Value

Low Value

Investors whose aggregated balance exceeds US$ 1 million as on June 30, 2014

Investors whose aggregated balance exceed an amount equal to US$ 50,000 but do not exceed an amount equal to US$ 1 million as on June 30, 2014

Investors whose aggregated balance exceeds US$ 1 million as on December 31, 2015

Investors whose aggregated balance does not exceed an amount equal to US$ 1 million as on December 31, 2015

Entity

Investors whose aggregated balance exceeds US$ 250,000 as on June 30, 2014 are termed as “above threshold” entity accounts and required to be identified and reviewed

Investors whose aggregated balance exceeds US$ 250,000 as on December 31, 2015 are termed as “above threshold” entity accounts required to be identified and reviewed

What are indicias, based on which existing individual investors are identified? If I am an existing investor why have I been contacted and what is required from me?

In case of existing individual investors, only those high value and low value individuals who are identified on the basis of the indicia (refer next question for meaning of indicia) are required to submit a self-certification, either curing the US or non-US (except India) indicia or confirming US or non-US (except India) person status. In addition to the self-certification, you are also requested to submit the relevant documentary evidence, as applicable.  In case of existing entity investors, all entities with valuation greater than the threshold value as on June 30, 2014 under FATCA and as on December 31, 2015 under CRS, would be contacted and required to submit a self-certification along-with the relevant documentary evidence. Entities will have to provide details of beneficial owners / controlling persons. 

 

Indicias are indicators which are identified from your information available with Canara Robeco Mutual Fund. List of indicia basis which existing low value and high value individual investors are identified are as follows:

An account having outside India indicia does not necessarily mean that the account would be reported. However, such accounts would be required to provide additional / relevant documents, in specific cases. 

  • place of birth in any country or territory outside India or
  • current mailing or residence address in any country or territory outside India; or
  • ·one or more telephone numbers in a country or territory outside India and no telephone number in India; or
  • standing instructions in a country or territory outside India; or currently effective power of attorney or
  • signatory authority granted to a person with an address in a country or territory outside India; or
  • a "hold mail" instruction or "in-care-of" address in a country or territory outside India if the reporting financial institution does not have any other address on file for the account holder

 

Who is a New Investor?

  • In case of FATCA, investors who have opened folio(s) on or after July 01, 2014 are termed as "New Investors".
  • In case of CRS, investors who open folio(s) on or after January 01, 2016 will be termed as "New Investors".

If I am a new investor then why am I been contacted and what is required from my end?

Under FATCA all new investors with folios opened between July 01, 2014 and October 31, 2015 (individuals as well as entities) irrespective of indicium would be contacted and required to submit a self-certification and additional documentary evidence, if any, in order to establish the FATCA status. From November 01, 2015, it would be mandatory for all the new investors who wish to open a new folio(s) should provide Canara Robeco Mutual Fund with self-certification and relevant documents, if any. 

 

Who is a U.S. person?

The term "United States person" means:

i) A citizen or resident of the United States,

ii) A partnership created or organized in the United States or under the law of the United States or of any State, or the District of Columbia,

iii) A corporation created or organized in the United States or under the law of the United States or of any State, or the District of Columbia,

iv) Any estate or trust other than a foreign estate or foreign trust. (See Internal Revenue Code section 7701(a)(31) for the definition of a foreign estate and a foreign trust.), or

v) Any other person that is not a foreign person.

 

Who is a U.S. Citizen?

The term "United States Citizen" means:

i) An individual born in the United States,

ii) An individual whose parent is a U.S. citizen,

iii) A former alien who has been naturalized as a U.S. citizen,

iv) An individual born in Puerto Rico,

v) An individual born in Guam, or

vi) An individual born in the U.S. Virgin Islands.

 

What is a specified U.S. person?

The term "Specified U.S. Person" means a U.S. Person, other than: 

i) a corporation the stock of which is regularly traded on one or more established securities markets;

ii) any corporation that is a member of the same expanded affiliated group, as defined in section 1471(e)(2) of the U.S. Internal Revenue Code, as a corporation described above

iii) the United States or any wholly owned agency or instrumentality thereof;

iv) any State of the United States, any U.S. Territory, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing;

v) any organization exempt from taxation under section 501(a) of the U.S. Internal Revenue Code or an individual retirement plan as defined in section 7701(a)(37) of the U.S. Internal Revenue Code;

vi) any bank as defined in section 581 of the U.S. Internal Revenue Code; vii) any real estate investment trust as defined in section 856 of the U.S. Internal Revenue Code;

viii) any regulated investment company as defined in section 851 of the U.S. Internal Revenue Code

ix) or any entity registered with the U.S. Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. 80a-64);

x) any common trust fund as defined in section 584(a) of the U.S. Internal Revenue Code;

xi) any trust that is exempt from tax under section 664(c) of the U.S. Internal Revenue Code or that is described in section 4947(a)(1) of the U.S. Internal Revenue Code;

xii) a dealer in securities, commodities, or derivative financial instruments (including notional principal contracts, futures, forwards, and options) that is registered as such under the laws of the United States or any State;

xiii) a broker as defined in section 6045(c) of the U.S. Internal Revenue Code; or

xiv) any tax-exempt trust under a plan that is described in section 403(b) or section 457(g) of the U.S. Internal Revenue Code.

 

If I am an Indian citizen would I be covered under FATCA and CRS?

Existing investors with indicias other than India and all new investors would be required to submit a self-certification and any additional document, thereof, as mandated under FATCA and CRS.

 

I have invested in Canara Robeco Mutual Fund and I am a student studying in a country outside India with no tax liability in that country. What information is required from me?

You will be required to provide us with a document proof to ascertain that you are a student. Also, you will have to provide a "reasonable explanation" which should include a statement stating that you are a student at an educational institution in the relevant jurisdiction and hold an appropriate visa. On receipt of the aforesaid documents you would not be reportable. 

 

Why is Canara Robeco Mutual Fund required to collect additional information from its investors? Has Canara Robeco Mutual Fund volunteered for such tax information reporting?

The Indian Government has signed agreements under FATCA and CRS. Further, the Central Board of Direct Taxes (CBDT) has framed and notified rules and guidance note, which requires Indian Financial Institutions (FIs) to report tax information about US and non-US (except India) account holders to the Indian Tax Authority. The agreements and rules impose obligations on Canara Robeco Mutual Fund to collect such information.

 

Is Canara Robeco Mutual Fund the only organisation to be affected by FATCA and CRS?

No. All Banks and other Financial Organisations will be affected by FATCA and CRS; however, their approach to adopting FATCA and CRS may differ. 

 

What are the obligations of Canara Robeco Mutual Fund under FATCA/CRS?
In case of existing investors, Canara Robeco Mutual Fund will have to review and identify investors based on indicia and threshold values for all US and non-US (except India), and would be required to seek selfcertification from them along-with relevant documentary evidence. All the new investors would be contacted and would be required to submit self-certification. Details of investors who agree to the US or non-US (except India) status, would be reported to the Indian Tax Authorities. In addition, Canara Robeco Mutual Fund may also need to report information about investors who do not provide the required documentation to us as per the applicable time-lines provided in the rules.

 

To whom will Canara Robeco Mutual Fund have to report this additional information to?
Canara Robeco Mutual Fund will have to report the information to the Indian Income Tax Authorities who would then transmit the financial information to the Tax authority of the relevant countries. 

 

What is the information that is being sought from investors?
Investors will be expected to provide details such as Country of Tax residence, Tax Identification Number from such country, Country of Birth, Country of Citizenship, etc. A separate form is made available, in which existing as well as new investors can submit such information along-with any other document, thereof. 
In case of Entity investors, the above mentioned information of the entity as well as of the controlling persons will have to be submitted. (Refer SEBI circular no. CIR/MIRSD/2/2013 dated January 24, 2013 for guidelines on identification of beneficial ownership). Apart from the above, Canara Robeco Mutual Fund would be required to report any additional information sought by the local authorities from time to time. 

 

How frequently will Canara Robeco Mutual Fund seek information for FATCA / CRS purposes?
Canara Robeco Mutual Fund will seek such information only once from every investor. Further, if there is any discrepancy in the account information, we may be required to contact the investors again to obtain additional information/documentation so that we are able to update their account classification under FATCA/CRS. Additionally, should there be any change in information provided by you, then you are advised to inform us the same promptly, i.e., within 30 days. 

 

What if any investor does not provide the requisite information?
Investors (Investors who have opened folio(s) between July 01, 2014 and August 31, 2015:
The Central Board of Direct Taxes, vide a press release dated April 11, 2017, has notified that all the investors who have opened folio(s) between July 01, 2014 and August 31, 2015 need to submit self-certification as required under FATCA by April 30, 2017. This notification requires us to restrict transactions, including redemptions, in the folios where such self-certification is not received. Further, information related to investments of all such investors would be reported to the Indian Tax Authorities. The transactions by the investors in such restricted folio(s) would, thereafter, be allowed once the self-certification is obtained from them. 

New Investors (Investors opening folio(s) w.e.f. November 01, 2015):
From November 01, 2015, all the investors who wish to open a new folio would be required to submit FATCA / CRS self-certification mandatorily, if the same is not readily available with Canara Robeco Mutual Fund. Further, if any investor does not provide / fail to provide the FATCA / CRS information and documents; then he / she will not be allowed to open a folio with Canara Robeco Mutual Fund and the application would be rejected. 

Existing Investors (Investors who have opened folio(s) on or before June 30, 2014): 
Existing investors (folio(s) opened on or before June 30, 2014) who do not provide the requisite information, such investors will be treated as "Recalcitrant Account Holders" (undocumented investor) and information related to their investments would be reported to the Indian Tax Authorities. 

 

Investor - Initiated transactions that would be restricted

Transactions that would be permitted

New or additional Purchase

Corporate Actions (Dividend Reinvestment / Payouts)

Redemptions & Switches

Pre-existing standing instructions (SIP, SWP, STP, DTP, Triggers) till expiry

New Registrations or changes (SIP, SWP, STP, DTP, Triggers)

Automatic maturity payment of close ended schemes if provided in the Scheme Information Document.

Payment of Unclaimed dividends / redemption proceeds)

KRA led changes

New Lien Marking or Removal

Lien Invocation or Lien cancellation by Financial Institution or pledgee

 

Transmission of Units with FATCA self-certification of the claimant

 

To whom does this restriction apply?
As per the CBDT press release, the restriction applies to all those investors who have opened folio(s) between July 01, 2014 and August 31, 2015 and have not yet submitted the self-certification under FATCA / CRS.

 

If an investor submits a redemption request, will the same be rejected or processed with the payment being withheld?
The redemption request will be rejected, unless all unit holders in the folio submit the self-certification along-with with the redemption - either in physical mode or online.

 

If one of the joint holders has submitted the FATCA / CRS self-certification, but the other joint holder(s) / guardian have not, will the transaction be processed?
No. The transaction will still be rejected. The investors can transact only if all the joint holders / guardian have submitted a self-certification under FATCA.

 

In which folio(s) does this restriction apply?
As mentioned above referred CBDT press release, those investors who had opened their mutual fund folio(s) between July 01, 2014 and August 31, 2015 and have not yet provided the self-certification on FATCA / CRS will be impacted by the above.

 

If an investor gives a redemption request, will the same be rejected or will the same be processed with the payment being withheld?
The redemption request will be rejected in case of un-remediated folio(s), unless all holders submit the self-certification declaration form for remediation simultaneously with the redemption– either in physical mode or online.

 

If one of the joint holders has remediated the FATCA / CRS requirement in his / her PAN, but the other joint holder(s) / guardian have not, what will be the status?
The transaction will still be rejected and the investors can transact only after all the joint holders / guardian have provided the necessary FATCA self-certification / declaration.

 

Whether all holders in a folio should submit self-certification under FATCA?
Yes, self-certification is required for all the holders in the folio. In case of Minor investor, the Guardian would be required to submit the self-certification.

 

How can individual investors submit a self-certification under FATCA?
Individual investors may submit the self-certification under FATCA:

  • Online via our Registrar and Transfer Agents M/s KARVY website. Please click here to update the details online
  • By downloading the self-certification form. Please click here to download the form. You may submit the duly completed self-certification to any of our Investor Service Centers (ISCs) or to your distributor, if any or email the scanned copy to our Registrar and Transfer Agents M/s KARVY email ID: camsfatcaubo@camsonline.com

 

How can non-individual investors submit a self-certification under FATCA?
Please download the self-certification by clicking here  and submit the duly completed self-certification to any of our Investor Service Centers (ISCs) or to your distributor, if any or email the scanned copy to our Registrar and Transfer Agents M/s KARVY email ID: camsfatcaubo@camsonline.com

 

Once the PAN / Folio is remediated, can the investor be allowed to transact again? 
Yes. The investor can place all types of transactions after PAN for all holders in the folio is remediated for FATCA /CRS.

 

How can Investors / Distributors check FATCA status?

  • Investor / Distributors can click here to check the FATCA status. Please input your / your client's PAN to view the FATCA status.
  • Distributors can register for the mailback facility provided by our Registrar and Transfer Agents M/s KARVY and download the list of un-remediated investors. (Mailback report: WBR-79)

 

What is a recalcitrant account holder?
A recalcitrant account holder is defined as per the regulations as any holder of an account maintained by an FFI if such account holder is not an FFI and not meeting the threshold exceptions and the account holder:
Generally, a recalcitrant account holder is any account holder that
(1) fails to comply with reasonable requests for information necessary to determine if the account is a United States account; or 
(2) fails to provide the name, address, and TIN of each "specified United States person" and each substantial United States owner of a United States owned foreign entity; or 
(3) fails to provide a waiver of any foreign law that would prevent a foreign financial institution from reporting information required under FATCA. 

  • Fails to comply with the requests (documentation or information) by FFI;
  • Fails to provide valid W9
  • Fails to provide waiver
  • Provides documentation to classify the entity as Passive NFE but fails to provide information on substantial owners

 

Will this affect the existing investments of investors in the schemes of Canara Robeco Mutual Fund?
Under the provisions of FATCA and CRS, existing unit-holders with indicia may note that if they are tax residents or citizens of any country other than India than information regarding their investments would be reported to the Indian Tax Authorities on the basis of the self-certification and / or relevant documentary evidence submitted by them. For existing unit-holders with indicia but are tax residents or citizens of only India, then such unit-holders would be required to submit documentary evidence to establish their residence(s) for tax purposes along-with the self-certification. 
Acceptable documentary evidence are: 
1) Certificate of residence issued by an authorized government body (Government or agency thereof or a municipality of the country or territory in which the payee claims to be a resident) 
2) Valid identification issued by an authorized government body* (e.g. Passport, National Identity card, etc.) 

 

How frequently will Canara Robeco Mutual Fund seek information for FATCA / CRS purposes?
Existing investors with indicias other than India and all new investors would be required to submit a selfcertification and any additional document, thereof, as mandated under FATCA and CRS. 

What if I am a Mariner, would I be a reportable person?
If you are a Mariner and your country of birth / citizenship / nationality / tax residency is only India then you would not be treated as a reportable person. In case, if there is any conflict of information then you will be required to submit additional document in form of a valid identification issued by an authorized government body* (e.g. Passport, National Identity card, etc.). 

 

Can a Power Of Attorney (POA) sign the self-certification on behalf of the investor?
Yes, a POA can sign the self-certification on behalf of the investor provided the details mentioned on the self-certification should be of the unit-holder and not POA. 

 

Will folios held jointly by a reportable person and a non-reportable person considered as reportable?
A joint account which has one tax resident of a relevant foreign country reportable owner is treated as a reportable account and therefore the entire account is subject to the FATCA/CRS legislation. 

 

What is a Financial Institution (FI)?
The definition of an FI is very broad and is expected to encompass a number of entities generally not considered to be financial institutions. An FI is any entity that:
An FI will be classified as a Non-Reporting Financial Institution or a Reporting Financial Institution. 

  • Accepts deposits in the ordinary course of a banking or similar business;
  • As a substantial portion of its business holds financial assets for the account of others; or
  • Is engaged (or holding itself out as being engaged) primarily in the business of investing, reinvesting, or trading in securities, partnership interests, commodities, or any interest (including a futures or forward contract or option) in such securities, partnership interests, or commodities.

 

What is a Non-Participating/Reporting Financial Institution (NPFI)?
A Non-Participating/Reporting FI is any Financial Institution resident in a jurisdiction with which the US and/or CRS signatory countries/territories have an Intergovernmental Agreement ('IGA') for the implementation of FATCA and CRS that falls within the exemptions set out in the respective Intergovernmental Agreement or one which otherwise qualifies as: 
according to the USA Treasury Regulations.
Most Non-Reporting FIs will not need to obtain a Global Intermediary Identification Number (GIIN), and so will not need to register, or carry out the due diligence and reporting requirements under the Agreement. However, some Non-Reporting FIs will have some registration, due diligence and/or reporting obligations under the respective Agreement. 

i) a Deemed Compliant Financial Institution;

ii) an Owner Documented Financial Institution; or

iii) an Exempt Beneficial Owner

 

What is a Participating/Reporting FI (RFI)?
A Reporting FI is any Financial Institution that is resident in a jurisdiction with which the USA and/or CRS signatory countries have an IGA for the implementation of FATCA and CRS which is not a Non-Reporting FI. A Reporting FI is required to register with the IRS, will be responsible for ensuring that the due diligence requirements are met and for reporting to the local tax department or the IRS under the terms of the local regulations. 

 

What is a NFE?
A Non-Financial Entity (NFE) is an entity that is not a financial institution. In practice therefore this could apply to any company, partnership, trust, foundation or any other legal entity that is not a Financial Institution.
There are two categories of NFE:

i) Active NFE

ii) Passive NFE

What is an Active NFE?
An Active NFE means any NFE that meets certain specified criteria including any of the following:
 

i) Less than 50 percent of the NFE's gross income for the preceding financial year is passive income and less than 50 percent of the assets held by the NFE during the preceding financial year are assets that produce or are held for the production of passive income;

ii) The NFE is a Governmental Entity, an International Organization, a Central Bank, or an entity wholly owned by one or more of the foregoing;

iii) Substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a Financial Institution, except that an entity shall not qualify for this status if the entity functions as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes;

iv) The NFE is not yet operating a business and has no prior operating history, but is investing capital into assets with the intent to operate a business other than that of a Financial Institution, provided that the NFE shall not qualify for this exception after the date that is 24 months after the date of the initial organization of the NFE;

v) The NFE was not a Financial Institution in the past five years, and is in the process of liquidating its assets or is reorganizing with the intent to continue or recommence operations in a business other than that of a Financial Institution;

vi) The NFE primarily engages in financing and hedging transactions with, or for, Related Entities that are not Financial Institutions, and does not provide financing or hedging services to any Entity that is not a Related Entity, provided that the group of any such Related Entities is primarily engaged in a business other than that of a Financial Institution;

vii) Any NFE that fulfils all of the following requirements:

viii) It is established and operated in India exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in India and it is a professional organization, business league, chamber of commerce, labor organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare;

ix) It is exempt from income tax in India; x) It has no shareholders or members who have a proprietary or beneficial interest in its income or assets;

The applicable laws of the NFE's country or territory of residence or the NFE's formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable Entity other than pursuant to the conduct of the NFE's charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFE has purchased; and The applicable laws of the NFE's country or territory of residence or the NFE's formation documents require that, upon the NFE's liquidation or dissolution, all of its assets be distributed to a governmental entity or other non-profit organization, or escheat to the government of the NFE's country or territory of residence or any political subdivision thereof. Explanation.- For the purpose of this sub-clause, the following shall be treated as fulfilling the criteria provided in the said sub-clause, namely:-
(I) an Investor Protection Fund referred to in clause (23EA);
(II) a Credit Guarantee Fund Trust for Small Industries referred to in clause 23EB; and
(III) an Investor Protection Fund referred to in clause (23EC),
of section 10 of the Act;

 

What is a Passive NFE?
A passive NFE is defined as any NFE that is not

i) an active NFE or

ii) a withholding foreign partnership or withholding foreign trust pursuant to relevant USA Treasury Regulations

 

What is a Direct Reporting NFE?
A direct reporting NFE means an NFE that elects to report directly to the IRS certain information about its direct or indirect substantial U.S. owners, in lieu of providing such information to withholding agents or participating FIs with which the NFE holds a financial account. A passive non-financial entity (NFE) will not include an NFE that is a direct reporting NFE. An account held by a direct reporting NFE will not be treated as a US account and will not be reported by a participating FI with which the direct reporting NFE has a financial account to the Indian Tax Authority or the Internal Revenue Service (IRS). /p>

 

We are an Entity registered in India, would we still be required to provide FATCA and CRS selfcertification and Controlling Person (CP)/ Ultimate Beneficial Ownership (UBO) information?
Yes, an entity would be required to provide us with the self-certification and also the complete details of the CP / UBO. This is a requirement under both FATCA and CRS as prescribed by CBDT and also under SEBI regulation. 

 

Why is an HUF required to provide self-certification and details under UBO? What information is an HUF required to provide under UBO?
According to HUF law, HUF is a family that consists of persons lineally descended from a common ancestor. It is a group of family members and not an individual. It has its own tax identity distinct from its family members and hence, treated as an entity. Consequently, an HUF will be required to submit the FATCA details in the Non-Individual form for the same. Further, under UBO, the details of the KARTA can be mentioned. It is noted that the KARTA controls and manages the affairs of the HUF and would not be a lone individual to have a share in the profits and hence, the KARTA of the HUF may mention the UBO code as "03" i.e., Controlling Person of legal person - senior managing official. ;

 

What is the definition of a controlling person?
SEBI Master Circular No. CIR/ISD/AML/3/2010 dated December 31, 2010 has mandated all registered intermediaries to obtain, as part of their Client Due Diligence policy, sufficient information from their clients in order to identify and verify the identity of persons who beneficially own or control the securities account. The beneficial owner has been defined in the circular as the natural person or persons, who ultimately own, control or influence a client and/or persons on whose behalf a transaction is being conducted, and includes a person who exercises ultimate effective control over a legal person or arrangement. Further, the Prevention of Money Laundering Rules, 2005 also require that every banking company, financial institution and intermediary, as the case may be, shall identify the beneficial owner and take all reasonable steps to verify his identity. The Government of India in consultation with the regulators has specified a uniform approach to be followed towards determination of beneficial ownership, which is as below. 

 

A. For clients other than individuals or trusts:
Where the client is a person other than an individual or trust, viz., company, partnership or unincorporated association/body of individuals, the intermediary shall identify the beneficial owners of the client and take reasonable measures to verify the identity of such persons, through the following information:
a. The identity of the natural person, who, whether acting alone or together, or through one or more juridical person, exercises control through ownership or who ultimately has a controlling ownership interest.
Explanation: Controlling ownership interest means ownership of/entitlement to:
i. more than 25% of shares or capital or profits of the juridical person, where the juridical person is a company;
ii. more than 15% of the capital or profits of the juridical person, where the juridical person is a partnership; or
iii. more than 15% of the property or capital or profits of the juridical person, where the juridical person is an unincorporated association or body of individuals. 
b. In cases where there exists doubt under clause 4 (a) above as to whether the person with the controlling ownership interest is the beneficial owner or where no natural person exerts control through ownership interests, the identity of the natural person exercising control over the juridical person through other means. 
Explanation: Control through other means can be exercised through voting rights, agreement, arrangements or in any other manner. 
c. Where no natural person is identified under clauses (a) or (b) above, the identity of the relevant natural person who holds the position of senior managing official. 

 

B. For client which is a trust:
Where the client is a trust, the intermediary shall identify the beneficial owners of the client and take reasonable measures to verify the identity of such persons, through the identity of the settler of the trust, the trustee, the protector, the beneficiaries with 15% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership. 

 

C. Exemption in case of listed companies:
Where the client or the owner of the controlling interest is a company listed on a stock exchange, or is a majority-owned subsidiary of such a company, it is not necessary to identify and verify the identity of any shareholder or beneficial owner of such companies.

 

Where can the investor find detailed information on FATCA/CRS?
FATCA and CRS regulations, notices and other related topics are available on the below websites:
IRS website:
OECD website:
CBDT website (rules): 

Switch Related FAQs

  • Can I switch between schemes/ investment options/plans? If yes, how?
    Yes, you can switch between schemes/investment options/plans. You need to fill in a transaction slip, which you can download from our website or detach from the bottom of your account statement. The same can be submitted at any of our Official points of acceptance of transactions
    Alternatively, you may also redeem using our CANARA ROBECOMF Online. For more details  on CANARA ROBECOMF Online, refer to the Online section within the FAQs or contact us
  • Is there any load on switching?
    A switch from one scheme to the other is treated as redemption from the scheme from where it is switched out & a purchase into the scheme into which it is being switched. Thus, you will be liable for any 'applicable' entry load or exit load.

     

  • How do I apply for a Systematic Investment Plan (SIP)? 
    First time investors can attach, along with the mutual fund application form, a SIP Enrolment form. The SIP enrollment form is usually submitted along with an auto-debit form. First time resident individual investors with mode of holding as single, can start directly creating a folio and start investing online on CANARA ROBECOMFOnline, refer to section on Frequently Asked Questions (FAQs) or contact us.

    Existing investors can fill the SIP enrollment form mentioning the folio number and submit it along with the auto-debit form. If you are an existing investor with online transaction facility, you can logon to www.Canara Robecofund.com and apply for a SIP. 

Systematic Investment Plan

How do I apply for a Systematic Investment Plan (SIP)? 
First time investors can attach, along with the mutual fund application form, an SIP Enrolment form. The SIP enrollment form is usually submitted along with an auto-debit form. First time resident individual investors with mode of holding as single, can start directly create a folio and start investing online 

Existing investors can fill the SIP enrollment form mentioning the folio number and submit it along with the auto-debit form. If you are an existing investor with online transaction facility, you can logon to www.Canara Robecofund.com and apply for an SIP. 

NEFT

  • What is National Electronic Funds Transfer (NEFT)

    This is a facility introduced by the Reserve Bank of India (RBI). NEFT is a nationwide electronic funds transfer system to move funds from any bank branch in any part of country to any other bank branch in another part of the country.

     

  • Who will benefit from this service?

    This payout channel will be particularly beneficial to all such investors whose mandated bank account is not in the list of banks with whom we presently have a direct credit arrangement for crediting their dividend / redemption proceeds. This service will also benefit all such investors at locations where a Canara Robeco Mutual Fund Investor Service Centre (ISC) / a Canara Bank branch, is not present and such locations are covered by the RBI for payments through the NEFT mode. The list of these bank branches participating in the NEFT is published by RBI on its website i.e. http://www.rbi.org.in/scripts/neft.aspxThe list of locations where we have an ISC is available under the contact us section. The investors can check whether a branch of Canara Bank is present at their location on the link provided i.e.https://www.Canarabank.com/branch-atm-locator

     

  • What are the advantages of NEFT over the current payout mode?

    Investors whose current payments are settled through a demand draft (DD) / Pay Order (PO) for their dividend / redemption payouts are the prime beneficiaries. Such DD’s / PO’s are then dispatched to the investor, which would take a couple of days to reach. In comparison, through NEFT the beneficiary gets the credit usually on the same day or the next day depending on the time of settlement. This makes payment settlement faster, safer and risk free.

     

  • How will I get intimated about such payments if I opt for NEFT?

    Immediately after a NEFT payment is effected, an intimation will be sent to the investor via a statement of account for redemptions and by means of a NEFT advice for dividend payments.

     

  • How do I enroll for this facility?

    In case you wish to enroll for the NEFT facility kindly visit the website and download the form. The form needs to be forwarded to us. Please allow us about 1 week after receipt of the form to register for the facility. Once the registration is completed, a statement of account confirming NEFT enrolment will be dispatched to your mailing address registered with us. Thereafter, any payment pertaining to redemption/dividend payment will be effected through NEFT.

     

  • Any other important details?

    Investors must fill up the NEFT enrolment form, complete in all respects and duly signed, accompanied by a copy of the cheque leaf of the bank account as registered with us (you may check for this information on your last statement of account sent by us) and submit the same at the nearest Canara Robeco Mutual Fund Investor Service Centre. Most importantly, information on the MICR number and the Indian Financial System Code (IFSC) must be clearly stated for the NEFT to be enabled. The MICR number is a nine-digit (9) number, which appears on the cheque leaf adjacent to the cheque number. The IFSC code also appears on the cheque leaf, usually towards the bottom left hand side and is an eleven-character/digit (11) representation.

     

  • Are there any charges for NEFT enrolment?

Canara Robeco Mutual Fund does not charge any amount for effecting the payments through NEFT. Most banks do not charge for this facility. However a few banks may charge a nominal charge for this facility, which is to be borne by the investor. Please check with your bank about these charges, if any. However, given the inherent advantages of such a payment mechanism, it is a recommended mode of receiving payments.

For more details on NEFT or FAQs on NEFT, investors are advised to visit – https://www.rbi.org.in 

For any clarifications you may write to us at crmf@Canararobeco.com or alternatively you may call our toll free no 1800 209 2726 between 8 AM to 9 PM (except Sundays)

Transmission FAQ

 

Death of Minor (Nomination Not Registered and Parents not alive)

 

  • Basic Documents

1. Letter from the Nominee/s or the Claimant(s) / guardian of alternate child / new Karta addressed to the AMC / FUND / Registrar. 
2. Death Certificate of deceased Unit Holder/s Karta in original or Photocopy duly notaraized or attested by a gazette officer or a bank manager (If the certificate is issued in a Foreign Country, such a certificate should be certified by the Indian embassy, to ensure the authenticity of the certification) 
3. KYC of Nominee/s or Claimant/s or surviving Unit Holders or HUF and New Karta, OR KYC of the Parent / Guardian (in case of nominee / claimant being a minor / of unsound mind), OR Guardian of the Alternate Child, OR KYC of the legal guardian in case the claimant Karta is of unsound mind. 
4. New Bank Mandate details - duly attested by Bank Manager - (Annexure K1), or Bank Statement or Cancelled Cheque copy with account number and holders name printed on the cheque. 

5. Any appropriate document evidencing relationship of the natural guardian with the deceased minor unit holder (Indemnity is required from the guardian irrespective of the amount) Attested copy of the birth certificate of the nominee or alternate child 

 

  • Legal Documents

1. Indemnity Bond duly signed and executed by the nominee(s) (parent / legal guardian, in case nominee is a minor) / guardian of alternate child (Format as per Annexure K2). (Indemnity is required from the guardian irrespective of the amount) Annexure K2 is when a nominee is registered. Applicable form is K3  

2.Letters of administration / Court Order

KYC, Supplementary KYC and UBO

What is the meaning of KYC?

KYC means Know Your Customer. As mandated under extant SEBI regulations and provisions of Prevention of Money Laundering Act, every intermediary (including Mutual Funds) is required to have a Client Identification Program and frame a KYC policy, which means knowing your customer by seeking information and supporting documentation about the customer's identity and address, besides other information like address, nationality, residential status, PAN etc.  

 

To which category of investors / Unit holders are these KYC requirements applicable?

The requirement is applicable to all categories of investors eligible to invest with us viz., Resident Individual investors, Non Resident Indians, Persons of Indian Origin (PIO), HUF, Societies, Partnership Firms, Trusts, Companies, Body Corporate, Public Sector Undertakings, Banks, Financial Institutions, Mutual Funds, Foreign Institutional Investors and such other individuals / institutions, including any holders / issuers of Power of Attorney.  

 

KYC requirements are applicable for which transactions?

KYC compliance is mandatory for the below mentioned a. New / Additional Purchases b. Switch Transactions c. New SIP/ STP/ Flex STP/ FlexIndex/ DTP registrations  

 

As an existing Investor / Unit holder, I / We do not have investments of / intend to invest 50,000 or more. Do I / We still have to meet the KYC requirements?

Compliance with KYC requirements is mandatory to invest in mutual funds irrespective of the investment amount.

 

What is the frequency of updating KYC information?

In case there are any changes to any of the information provided previously, then you are required to submit an updated form. This new information will override the previous information. In terms of PML Act, all intermediaries are obligated to exercise ongoing due diligence with respect to the business relationship with every client. Accordingly, you may be approached for any additional information.  

 

How does one complete KYC formalities/ become KYC compliant?

KYC compliance consists of 2 parts

  • Basic KYC: 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. Updating KYC with a KRA basically involves, providing proof of identity, proof of address and In-person verification.
  • Supplementary KYC: Intermediaries are mandated to collect the additional information from clients details such as Occupation details, Gross Annual Income/ net worth and Politically Exposed Person (PEP)* status etc. In case of non-individuals, the details of Ultimate Beneficial Owners (UBO) have to be provided.  

 

What attestations are required for KYC related documents?

All documents required by us in terms of PMLA must be certified i.e. attested / gazetted / notarized by appropriate authorities (see instructions on KAF). In case you wish to bring the original documents to our offices, the copies of such documents should be self-certified. In such cases, original documents will be seen for verification by POS and returned to the applicant.  

 

Who is authorized to complete In-person verification?

In-Person Verification (IPV) - Mandatory: SEBI vide circular number MIRSD/Cir-26/2011 dated December 23, 2011 has mandated IPV for all new clients other than Non-Individuals In case of mutual funds, the IPV can be performed by AMCs or AMFI/NISM certified distributors who have complied with KYD requirements. Further, details like name of the person doing IPV, designation, organization name, signatures and date of IPV should be recorded on the KYC form at the time of IPV.

Further, SEBI has mandated that In Person Verification (IPV) of clients be carried out by the Intermediaries through a process specified in this regard. The IPV shall be a one-time process and IPV carried out by a client with any of the intermediaries shall be relied upon by all the other Intermediaries with respect to the dealing of such client with such other Intermediaries. With respect to the Mutual Fund clients, IPV carried out by the Know Your Distributor (KYD) registered Distributors who hold valid certifications issued by the National Institute of Securities Market (NISM)/Association of Mutual Funds in India (AMFI) will be valid. For investors who deal under “Direct” broker code (without any distributor), the IPV conducted by Scheduled Commercial Banks can also be relied upon.  

 

Where will this information be stored?

The information will be updated by the KRA (KYC Registration Agency) in their central database.  

 

What is a KRA?

KYC Registration Agency (KRA) is an agency registered with SEBI under the Securities and Exchange Board of India [KYC (Know Your Client) Registration Agency] Regulations, 2011. The KRA will maintain KYC records of the investors centrally, on behalf of capital market intermediaries registered with SEBI.

 

How many KRA are registered with SEBI?

At present, there are 5 KRA’s registered with SEBI

  • CVL KRA - www.cvlkra.com
  • NDML KRA - www.kra.ndml.in
  • Dotex KRA- www.nsekra.com
  • KARVY KRA - www.camskra.com
  • Karvy KRA - www.karvykra.com

 

Where will I get the forms?

The KYC forms can be downloaded from the above-mentioned websites of the respective KRA. The KYC forms are also available on our website under Investor Desk Tab within Forms and Documents. The Supplementary KYC form is a separate form which is also available on our website.

 

Where can one submit KYC DOCUMENTS?

Unit holders can submit these forms to any of our Investor Service Centres (ISC) or offices of our registrar, KARVY Ltd. nearest to your location. This form can also be submitted along with a fresh purchase.

 

How many days will it take to update the information?

After submitting all the requisite documents, the KRA’s will take 10 working days to update the KYC status.  

 

How will I / We come to know my /our KYC Compliance status?

On receipt of KAF along with the required documents, the KYC Compliance letter will normally be issued across the counter at the designated Official Points of Service after preliminary verification of documents. However, based on final verification of the documents at the back office, the KYC Compliance letter may be invalidated in case of deficiency of documents / incomplete information. The status of KYC is available on the websites of the KRAs.  

 

Are Know Your Customer Application Form (KAF) / documentation requirements separate for Individual / Non- Individual applicants?

Yes. Separate KAF is available for Individual and Non-Individual applicants. Documentation requirements are also unique to both categories of applicants.  

 

I am a joint holder in a Mutual Fund investment account (folio). Do I need to comply with KYC requirement?

Yes all investors including joint holders within a folio / all other folios need to get KYC compliant. If investment is in the name of a minor, the Guardian has to be KYC compliant. Holders and issuers of Power of Attorney, both have to be KYC compliant.  

 

Is it necessary for a minor to be KYC complaint?

A minor investor is not required to be KYC compliant for investments in Mutual funds. In such cases, the Guardian has to be KYC compliant and provide his / her KYC Compliance letter along with the minor's investment application form. Upon attaining majority, the unit holder will have to complete KYC formalities and inform us to update the status in our records.  

 

I already have a KYC Compliance letter provided by a POS / Registrar / other Mutual Fund. Can I / We use the same for investing in your Fund?

If you have already updated your KYC information through some other intermediary and the KYC status on the KRA website is updated as “KYC Registered – New KYC” you may attach this as KYC confirmation while investing with us.  

 

Can I / We submit the proof of address in a local language?

If a valid document (including attestations / certifications) towards proof of address is in a regional language or a foreign language, they have to be translated into English prior to submission.  

 

Can the address proof and identity documentary proof, be of any date?

Only Permanent Account Number (PAN) card can be submitted as proof of Identity . However, for proof of address a most recent document needs to be submitted which is not more than 3 months old. If proof of address is for example a passport, voters ID, Driving License, etc such a requirement will not apply as long as it is within the validity period.  

 

Does a Nominee have to be KYC compliant?

No. In the event of such nominees stepping into the shoes of a unit holder by virtue of Operation of Law, the nominee has to complete KYC requirements in force at that time. If the nominee is still a minor in such an event, the Guardian of the minor has to be KYC compliant.  

 

For a HUF investor, who has to comply with the KYC requirements?

The HUF as an entity is required to be KYC compliant.  

 

For a partnership firm investing in a mutual fund scheme, do all partners have to comply with the KYC requirements or merely the Authorised Signatory (ies)?

The Partnership entity is required to be KYC compliant and not the individual partners. Hence all requirements as applicable to a non-individual applicant will apply. Please refer new KRA norms.  

 

Can I / we submit the "photocopy of an attested copy" of an original document?
No. Such documents will not be accepted. Every documentary proof has to be either certified i.e. attested / gazetted / notarized by appropriate authorities or the document has to be produced in original with self-attested photocopies for In-person verification (IPV).  

 

What happens if any document / information deficiency is observed?

Any deficiency in documentation / information will render the KAF and KYC Compliance letter, if any, allotted as invalid. The status of KYC will be as “KYC-on hold “. The applicant will have to provide the required information/ documents to update the KYC status. Investors will not be able to make any subscriptions in our schemes till such time that the status is “KYC-on hold”.  

 

What do I / We need to do in case I / We have multiple folios with Canara Robeco Mutual Fund

If the PAN is updated in all the folios, KYC will also get updated in all the folios. In case the PAN is not updated, in all or few folios, investors must send us a separate letter containing a complete list of their folios, for updating PAN along with KYC status in those folios. The list must explicitly state the unit holders name unit-holding pattern (whether 1st / 2nd / 3rd unit holder). All unit holders must sign such letters. Invalid requests will not be processed. We also strongly recommend that for similar unit holding patterns across folios, you send us a request for consolidation of folios.  

 

My KYC was processed from some other fund house, can I still transact with Canara Robeco Mutual Fund?
Yes, provided the status of your KYC is “KYC REGISTERED - New KYC” only.  

 

What do I / We need to do in case I / We have multiple folios with Canara Robeco Mutual Fund?

Such Unit holders must send us a separate letter containing a complete list of their folios. The list must explicitly state the unit holders name, scheme, plan, unit-holding pattern (whether 1st / 2nd / 3rd unit holder). All unit holders must sign such letters. Invalid requests will not be processed. We also strongly recommend that for similar unit holding patterns across folios, you send us a request for consolidation of folios.  

 

I / We do not want to invest now, can I / we apply for KYC Compliance?

It is in your own interest to do so at the earliest, so that a future investment is smoothly processed.  

 

Do I need to be KYC compliant to switch between schemes of Canara Robeco Mutual Fund?

Yes, you need to be KYC compliant to switch between schemes of Canara Robeco Mutual funds irrespective of the switch amount.  

 

Which transactions are excluded from KYC?

KYC will be not be applicable for the below mentioned a. Existing SIP/ STP/ Flex STP/ FlexIndex/ DTP registrations, including those received till December 31, 2010 b. Dividend reinvestment transactions of any amount. c. Redemptions  

 

What is supplementary KYC?

In accordance with SEBI Circular No. CIR/MIRSD/13/2013 dated December 26, 2013, the additional details viz. Occupation details, Gross Annual Income/net worth and Politically Exposed Person (PEP)/ Related to PEP status mentioned under section 2 & 3 which was forming part of uniform KYC form will now be captured in the application form of the Fund.

 

I had previously submitted all this information to the KRA. Why do I need to submit this again?

As per the above circular, these details need to be maintained by each intermediary. This new information will override any previous information provided.  

 

What is the difference between KYC and Supplementary KYC?

The KYC details maintained with the KRA consists of only basic information of an investor like address, the contact details, and his tax status. The supplementary KYC consists of others details of the investor such as Occupation details, Gross Annual Income/net worth and Politically Exposed Person (PEP) status )*/ Related to PEP, etc. The supplementary KYC information is to be sought by each intermediary.

 

How do I know whether the supplementary KYC information is updated in your records once I submit the same.

You will receive an email from KARVY confirming receipt of your information. Alternatively, you may contact any of our Investor Services Centre (ISC) or call us on 180030106767 to know the status. Kindly allow 5 working days for updation of such information provided in a physical form. Information submitted online on the website of KARVY will be updated in our records on the same day.  

 

I have investments in other MF as well, will my supplementary KYC information be shared across all AMCs.

This information will be updated by our registrar KARVY (Computer Age Management Services Pvt. Ltd) in their central database. This information will be shared with all other AMC’s serviced by KARVY where you have investments. Please visit the website of KARVY to check the list of such AMCs.

 

Who is an Ultimate Beneficial Owner (UBO)?

The beneficial owner is the natural person or persons, who ultimately own, control or influence a client and/or persons on whose behalf a transaction is being conducted, and includes a person who exercises ultimate effective control over a legal person or arrangement.  

 

Which categories of investors have to provide details of UBO?

SEBI vide its Circular No. CIR/MIRSD/2/2013 dated January 24, 2013 has mandated that all investors (other than Individuals) are required to provide details of UBO(s).  

 

Who need not provide the UBO details?

In case the investor or owner of the controlling interest is a company listed on a stock exchange or is a majority owned subsidiary of such a company, the details of shareholders or beneficial owners are not required to be provided. Such a company has to submit a declaration to this effect.  

 

Why the need to know the details of ‘Ultimate Beneficial Owner’?

The Prevention of Money Laundering Rules, 2005 inter alia mandates that every intermediary shall identify the beneficial owner and take all reasonable steps to verify his identity. SEBI Circular CIR/MIRSD/2/2013 dated January 24, 2013 prescribes a uniform approach to the securities industry towards determination of beneficial ownership. The term reflects a recognition that a person in whose name the Units are held not necessarily be the person who ultimately controls such Units or who is ultimately entitled to such Units.  

 

Who can complete and sign the declaration?

Only persons authorized to represent the company or entity according to its constitution/ resolutions should complete and sign the declaration.  

 

How does one identify an UBO?

The identity of the UBO can be ascertained from the following information:

  • For investments of non-individuals (other than trusts) viz., company, partnership or unincorporated association/body of individuals, the identity of the natural person, who, whether acting alone or together, or through one or more juridical person, exercises control through ownership or who ultimately has a controlling ownership interest. Here controlling ownership interest means ownership of/entitlement to:

     

    i. more than 25% of shares or capital or profits of the juridical person, where the juridical person is a company;
    ii. more than 15% of the capital or profits of the juridical person, where the juridical Person is a partnership; or
    iii. more than 15% of the property or capital or profits of the juridical person, where the juridical person is an unincorporated association or body of individuals.

  • Where there exists doubt as above as to whether the person with the controlling ownership interest is the beneficial owner or where no natural person exerts control through ownership interests, the identity of the natural person exercising control over the juridical person through other means such as through voting rights, agreement, arrangements or in any other manner.
  • Where no natural person is identified under clauses a or b above, the identity of the relevant natural person who holds the position of senior managing official.

 

Who will be considered as UBO in case of trust?

The identity of the settlor of the trust, the trustee, the protector, the beneficiaries with 15% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership.  

 

How can I register the UBO?

You can register the UBO details by filling up the ‘Declaration of Ultimate Beneficial Ownership’ Form and submitting the same to the nearest Investor Service Centre (ISC) of Canara Robeco Mutual Fund. This information will be updated by our registrar KARVY (Computer Age Management Services Pvt. Ltd) in their central database. This information will be shared with all other AMC’s serviced by KARVY where you have investments.  

 

Are there any special requirements for Non Resident Indians?

Yes. Such applicants must furnish a certified copy of proof of their identity (their PAN). PAN is the sole identification number for KYC compliance. Also a copy of their overseas / local address proof (as applicable) certified by a local authority / Indian embassy / consulate is required. If documents are not in the English language, they must be translated into English.

 

Are there any special requirements for Persons of Indian Origin (PIO)?

Yes. The requirements are same as those applicable to Non Residents Indians.  

 

Currently I am out of India. Can I send scanned copy of the requisite KYC documents or fax the same for verification?

You may send us a true copy of your documents attested by the Notary Public, Gazetted Officer, Manager of a Scheduled Commercial Bank (Name, Designation and Seal should be affixed on the copy) or by an official from the local office of the Indian Embassy / Consulate. However, the KYC application form has to be in original only.

 

I work for the Merchant Navy and hence, do not have any overseas address proof. I wish to get KYC compliant. How do I go about it?

You may provide your local address proof and a notarized copy of mariner's declaration or your Continuous Discharge Certificate (CDC).  

 

GUIDANCE NOTE: This FAQ is only meant to clarify certain basic questions around PMLA. The information given is included only for general purpose and the investors / unit holders should be aware that the relevant rules, regulations, or their interpretation might change. We strongly advise you to contact your distributor / our Investor Service Center / official POS for any additional information / clarifications. Please read the notes, guidelines and checklist given on the reverse of the KAF before filling up / submission of the same to a POS. Please visit the website of the Financial Intelligence Unit of the Government of India at http://fiuindia.gov.in or the website of Securities and Exchange Board of India at http://www.sebi.gov.in/ regularly for further information.  

Introduction of "Direct Plan"

What is a "Direct Plan"? 
SEBI has directed Mutual Funds /AMC vide SEBI Circular no. CIR/IMD/DF/21/2012 dated September 13, 2012 to provide a separate plan for direct investments, i.e. investments not routed through a distributor, in existing as well as new schemes. Hence Canara Robeco Mutual Fund has launched separate plans under existing open-ended schemes for direct investments called "Direct Plan" with effect from January 1, 2013.
 
When have the "Direct Plans" been launched? 
The "Direct Plans" were launched with effect from January 1, 2013.
 
Who can apply under the Direct Plan? 
Investments under the Direct Plan are open to all categories of investors who choose to invest without routing the transaction via a distributor.  

 

How many plans will be available with effect from January 1, 2013? 
All Plans / Options / Sub-Options offered currently under "Existing Plans" of the Schemes are also available for subscription under the "Direct Plan". Thus, there shall be 2 plans available for subscription under the schemes viz. Existing Plan and Direct Plan.  

Which modes are available for investing into Direct Plans?
Investments under Direct Plans can be made through various modes offered by us for investing directly except Stock Exchange platform(s) and any other platform(s) where investors’ applications for subscription of units are routed through distributors.

 

What is the difference between the "Existing Plan" and "Direct Plan"?
The "Direct Plan" has a lower expense ratio as compared to existing plans in the same schemes, as there is no commission to be paid to the distributor under this plan.  

Is there a difference in the NAVs between the Direct and the Existing Plan?
Yes. Since there is a difference in the expenses charged by the Direct and Existing Plans under every scheme, there will be a difference in the NAVs for both these Plans.

 

"Direct Plan" is available under which schemes?

"Direct Plan" is available under the following schemes:

  • Open-ended schemes
  • Canara Robeco Liquid Fund - Premium Plan
  • New Fund Offer of Fixed Maturity Plans under close-ended schemes launched on or after the January 1, 2013 and
  • Interval Schemes (commencing from the first day of the Specified Transaction Period immediately after January 1, 2013).

Which schemes are not eligible under the "Direct Plan"?

"Direct Plan" will not include Exchange Traded Funds and plans under existing schemes which are discontinued for further subscriptions.

 

Which Plans / Options / Sub-options are available under the "Direct Plan"?
All Plans / Options / Sub-Options offered under the schemes will also be available for subscription under the "Direct Plan" (except Plans / Options / Sub-Options that have been discontinued).

 

Will the scheme portfolio change in the "Direct Plan"? No, the scheme portfolio will be the same for both "Existing plan" and "Direct Plan."

 

Will the scheme characteristics change in the "Direct Plan"? No, scheme characteristics such as Investment Objective, Asset Allocation Pattern, Investment Strategy, risk factors, facilities offered and terms and conditions including load structure will be the same.

 

How can I invest in "Direct Plan"?

Investors subscribing under Direct Plan of any scheme will have to indicate the Scheme / Plan name in the application followed by "Direct Plan". For example, Canara Robeco Cash Management Fund – Treasury Advantage Plan - Direct Plan. Additionally, investors should mention "Direct" in the ARN column of the application form

 

In case I do not clearly indicate the choice of plan in my application, what will be the default option under which the application will be processed?
Investors should indicate the Plan (viz. Direct Plan / Regular Plan) for which the subscription is made by indicating the choice in the appropriate box provided for this purpose in the application form. In case of valid applications received without indicating any choice of Plan, the application will be processed for the Plan as under:
 

Scenario

ARN Code mentioned by the investor

Plan mentioned by the investor)

Default Plan to be captured)

1

Not mentioned

Not mentioned

Direct Plan

2

Not mentioned

Direct

Direct Plan

3

Not mentioned

Regular

Direct Plan

4

Mentioned

Direct

Direct Plan

5

Direct

Not mentioned

Direct Plan

6

Direct

Regular

Direct Plan

7

Mentioned

Regular

Regular Plan

8

Mentioned

Not mentioned

Regular Plan

 

What will happen if I mention a wrong/ invalid/ incomplete ARN on the application form?
In cases of wrong/ invalid/ incomplete ARN codes are mentioned on the application form, the application shall be processed under Regular Plan. The AMC shall contact and obtain the correct ARN code within 30 calendar days of the receipt of the application form from the investor/ distributor. In case, the correct code is not received within 30 calendar days, the AMC shall reprocess the transaction under Direct Plan from the date of application without any exit load

 

What will happen if I don’t mention "Direct Plan" in the scheme name and also don’t mention broker code on my purchase request?
In this scenario, the units will be allotted under the "Direct Plan" of the scheme. In such cases, the minimum additional application amount for the scheme will apply as the minimum investment amount for "Direct Plan".

 

What will happen in case the distributor code is mentioned in the application form, but "Direct Plan" is indicated in the scheme name?
In this scenario, the distributor code will be ignored and the units for the investment will be allotted under Direct Plan. In such cases, the minimum additional application amount for the scheme will apply as the minimum investment amount for "Direct Plan".

 

My current investments are locked for redemptions. Can I switch into the "Direct Plan" of the same / other scheme?
In case of investments in schemes like Canara Robeco TaxSaver, Canara Robeco Long Term Advantage Fund or the lock-in option of Canara Robeco Children’s Gift Fund, you can switch-out / redeem after the lock-in period is completed.

 

What will happen in case a purchase application of over 2 lac is received in "Existing plan" on December 30, 2012 with no distributor code and the investment amount is realized before 3:00 p.m. on January 2, 2013?
In this case, the units will be allotted under Existing Plan with the NAV of January 2, 2013.

 

What would be the NAV applicable in case of a purchase eligible for historic NAV made in a liquid scheme under the Direct Plan on January 1, 2013?
For such purchases, the NAV of the previous business day is applicable. The NAV will be the same as that for the existing plan on December 31, 2012. In other words, units will be allotted in the "Direct Plan" with the NAV of December 31, 2012, subject to realization of funds.

 

In which plan will units be allotted if a purchase application is received without any distributor code in the "Existing Plan" after cut-off time on December 31, 2012?
Since the application was received after cut-off time on December 31, 2012 the same shall be deemed to have been received on the next Business Day and hence the units will automatically be allotted under the corresponding "Direct Plan" at the applicable NAV.

 

What will happen to my investments under Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) (Fixed or Capital Appreciation) without any distributor code registered prior to January 1, 2013?
In case of SIPs / STPs (Fixed or Capital Appreciation) registered prior to January 1, 2013 without any distributor code under the "Existing Plan", installments triggered on or after January 1, 2013 will be processed under the "Direct Plan". The terms and conditions of the existing registered enrolment shall continue to apply.

 

I had registered for SIP with distributor code prior to January 1, 2013. Will the installments triggered after January 1, 2013 be processed into the "Direct Plan"?
No. You have to submit a written request for the same. The request format is available with our Investor Service Centres (ISCs) and on our website. Such a request has to be submitted at least 15 days prior to the next installment date. Intervening installments, if any, will continue to be processed under the "Existing Plan".

 

I had registered for STP with distributor code prior to January 1, 2013. How can I shift the future installments into the "Direct Plan"?
You have to cancel the existing registration and register afresh into the "Direct Plan".

 

I had registered for Canara Robeco Flex STP* / Canara Robeco Swing STP* / Canara Robeco Flex-Index Plan* / Dividend Transfer Plan* (DTP) prior to January 1, 2013. How can I shift the future installments into the "Direct Plan"?
* with or without distributor code
You have to cancel the existing registration and register afresh into the "Direct Plan".

 

What will happen to my existing investments which are not routed through distributors?
Such investments will continue to be under the "Existing plan". In case you wish to transfer them to the Direct Plan of the same scheme, you may submit a switch request. Such switches will not be subject to exit load. However, investors should consult their professional tax advisor before initiating such requests.

 

I have routed my existing investments vide a distributor. I want my current investments to be transferred into the "Direct Plan" of the same scheme. What should I do?
You will be required to submit a switch request for transferring of units from "Existing plan" to "Direct plan". Please note that such switches will entail exit load. Investors should consult their professional tax advisor before initiating such requests.

 

If I submit a transaction slip with the words "Multiple Brokers" pre-printed on it and the words "Direct Plan" are not mentioned in the name of the switch-in scheme, will the switch-in be processed into the "Direct Plan" or "Existing Plan" switch-in scheme?
In this scenario, the units will be switched into the "Existing Plan" switch-in scheme irrespective of whether the units being switched are routed vide a broker or not. Please note that such switches may entail exit load / tax consequences. Investors should consult their professional tax advisor before initiating such requests.

 

Will exit load be charged if I switch my investments from "Existing plan" to "Direct plan" and vice versa?
For your investments which were routed through a distributor whether before or after January 1, 2013, any switch-out of these units from Existing Plan to Direct Plan of the same / other Scheme / Plan shall be subject to applicable exit load, if any.

For your investments which were made directly i.e. without any distributor code, exit load will not be levied on switch-out of units from Existing Plan to Direct Plan of the same Scheme / Plan.

No exit load shall be levied in case of switch of units from Direct Plan to Existing Plan of the same Scheme/ Plan. However, any switch-out or redemption of such investment from the Existing Plan shall be subject to exit load based on the original date of investment in the Direct Plan.

 

I want to switch my investments from "Existing plan" to "Direct plan" of the same scheme. What will be the NAV applicable for the switch-in scheme?
The NAV for the switch-in scheme will be as on the same date as that of the switch-out scheme.

 

What will be the criteria for NAV applicability for investments under "Direct Plan"?
The criteria of NAV applicability will remain the same as applicable for existing plans of the schemes.

 

Why are my existing investments not automatically transferred to the Direct Plan?
Existing investments cannot be transferred automatically under the Direct Plan, since plans are available for fresh / new investments only. Existing investments would continue to be a part of the existing scheme and you can switch them into the Direct Plan. Please note that such switches may entail exit load / tax consequences which need to be considered and understood before proceeding.

 

My distributor does not want brokerage but wants to maintain his code under the Direct Plan since he advised me about investing in the same. Is this allowed?
This is not allowed since investments made under the Direct Plan cannot be routed through a distributor code.

 

If I hold units in the Existing as well as Direct Plans of the same scheme and I submit a redemption / switch-out request without mentioning any specific plan, will my request be processed?
Yes, in this case, the request will be processed for units in the Existing Plan. If you wish to submit a redemption / switch-out request for units in the Direct Plan, "Direct Plan" must clearly be mentioned on the request.

 

If I hold units in the Existing as well as Direct Plans of the same scheme and I wish to redeem / switch-out units from both plans, what should I mention on the redemption / switch-out request?
In this case, you have to submit 2 separate redemption / switch-out requests, one for each plan.

 

If I hold units in any one of the Plans of a same scheme and I submit a redemption / switch-out request without mentioning any specific plan, will my request be processed? Yes, in this case, the request will be processed for units in the plan in which they are available.


If I hold units in the Existing Plan of a scheme and I want to submit a purchase / switch-in request into the Direct Plan of the same scheme, will I have to invest / switch the minimum investment amount for the switch-in scheme?
No, you may invest / switch the minimum additional application amount for investing into the direct plan of the scheme. For example, if you hold units in Canara Robeco Equity Fund – Growth, you may invest 1,000 or above as the first investment in Canara Robeco Equity Fund – Direct Plan – Growth in the same folio.

 

What will happen if there is a plan mismatch in the investment instrument and application?
The plan will be determined from the transaction request.

 

Can I invest in the Direct Plan vide the stock exchange platforms (BSE STaR or NSE MFSS)?
Since the stock exchange platforms necessitate routing transactions through distributors, these platforms can not be used for investing in the direct plans. However, investors holding units in the demat mode can redeem units in these plans from their demat account using the stock exchange platforms.

 

I submitted purchase / switch transaction 2 days ago. I want to change my broker code to Direct or vice versa for that transaction. What should I do?
Since the NAV for "Direct Plan" and "Existing Plan" under the same scheme will be different, any change in the requests already processed (for example – addition / deletion of broker code) will not be processed.

 

I forgot to add the distributor’s code to a purchase transaction that was processed yesterday. Can I submit a request for rectification?
Since the NAVs in the direct plan and existing plan of a scheme are different, requests for addition / deletion of broker code can not be processed. You will have to submit a switch request from the direct plan to the existing plan.

 

How can I add a distributor’s code to my existing investments in the direct plan? Since the NAVs in the direct plan and existing plan of a scheme are different, requests for addition / deletion of broker code can not be processed. You will have to submit a switch request from the direct plan to the existing plan.


How can I remove my distributor’s code from my investments in the existing plan?
Since the NAVs in the direct plan and existing plan of a scheme are different, requests for addition / deletion of broker code can not be processed. You will have to submit a switch request from the existing plan to the direct plan.

DIRECT Investment

 

What is the SEBI guideline on 'DIRECT' investment all about?In the interest of the investors, The Securities and Exchange Board of India (SEBI) has mandated that no entry load shall be charged for 'DIRECT' applications received by the Asset Management Company (AMC) i.e. applications received through Internet, submitted to AMC or collection centre / Investor Service Centre that are not routed through any distributor/agent/broker. This circular shall be applicable to:

- Investments in existing schemes with effect from January 4, 2008 and in new schemes launched on and after the said date.
- Additional purchases done directly by the investor under the same folio and switch-in to a scheme from other schemes if such a transaction is done directly by the investor.

 

Since when will the waiver of entry load for 'DIRECT' applications be effective?
The waiver of entry load for 'DIRECT' applications will be effective from January 4, 2008.

 

Is it applicable only for fresh investments?
New / additional subscriptions, existing Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) not routed through a distributor / broker / agent will not attract entry load.  

 

Would the entry load on a switch transaction be waived off in case it is routed directly, even if the transferee scheme attracts entry load?
Any transaction routed directly, i.e. without a broker, would not attract any entry load.  

 

Will I be charged an entry load for my existing SIPs / STPs registered before January 4, 2007, which were routed directly?
No entry load will be applicable for the installments falling on or after 04th January 2008 for SIP / STP routed directly, i.e. without a broker. Units will be allotted for the entire amount of redemption.  

 

For my existing SIP / STP can I change my broker code to 'DIRECT' for future installments?
Yes. A written request has to be given by the investor(s), depending on the mode of holding, for change of broker to 'DIRECT'. For all the future installments the entry load will be waived off. However, the request should be submitted at least 10 days before the next SIP / STP date.  

 

Is there any waiver of exit loads in the equity schemes?
There is no change in the exit load provisions.  

 

If I have an existing investment routed through a broker in a folio, will I be charged entry load for additional purchases?
The investments would continue to be routed through the recorded broker unless specifically instructed by the investor by mentioning 'DIRECT' on the application form / transaction slip and signed by the Unitholder(s), depending on the mode of holding. If the broker code is preprinted then the same has to be struck off and countersigned by the investor(s), depending on the mode of holding. In addition the word 'DIRECT' should be written on the transaction slip.  

 

If no broker code is mentioned on the transaction slip would the transaction be treated as 'DIRECT'?
Yes.  

 

If the broker code on the transaction slip is modified or changed to 'DIRECT', will an entry load be charged?
The change / alteration has to becountersignedby the investor(s), depending on the mode of holding. Only then the investment will be treated as 'DIRECT' and no entry load will be charged.  

 

If I invest through direct route, will I be charged entry load on my purchase / switch transaction?
Only if the investor selects the broker code as 'DIRECT' while transacting online, there will be no entry load for the purchase / switch transaction.  

 

How many days before the next SIP / STP installment date should I submit the change of broker code request in order to ensure that it is updated and that no entry load is charged on my next installment?
You are required to submit the change of broker code request at least 10 days prior to your next SIP / STP installment date.  

 

What is the Turn Around Time (TAT) for change of broker code request to be updated?
A change of broker code request would take approximately one week to get updated.  

 

Would my folio details be disclosed to my previous broker once my broker code is updated as 'DIRECT'?
No. However, we would intimate your old broker about the change of broker code.  

 

Can I submit a change of broker code request to KARVY directly?
Yes, as long as it is authorized by the Unitholder(s), depending on the mode of holding. However, the procedure would be different for the Channel Distributors. In such case, the documents have to be routed through the Channel Distributor.

  

If I request a change of broker code to 'DIRECT' for my transaction dated before January 4, 2008, will my units be recreated?
No. The said guideline is effective January 4, 2008.  

 

If I invest directly, can I later add a broker?
Yes. A written request has to be submitted for change of broker code signed by the Unitholder(s), depending on the mode of holding. However, the procedure would be different for the Channel Distributors. In such case, the documents have to be routed through the Channel Distributor.  

 

If I add a broker to a 'DIRECT' transaction (transaction already effected), would the broker be eligible for commission?
Yes, the broker would be eligible for the trail commission from the date the broker code is added in the scheme.  

 

After I change my broker code to 'DIRECT', would my previous broker continue to receive the trail commission?
No.  

 

I have transacted through ICICI Direct. Would my investment be subject to entry load?
No Entry Load is applicable.

Consolidated Account Statement

What is a Consolidated Account statement (CAS)?
Consolidated Account Statement is a single account statement that reflects alltransactions of a unit holder in allfolios across allschemes of allmutual funds.

 

When will I start receiving the CAS?
The first CAS statement shall be sent in the month of November 2011 covering all your transactions in October 2011. Thus, CAS will be sent every month going forward, for your transactions during a calendar month and dispatched to you before the 10th of a succeeding month.  

 

Is there a charge / fee for receiving the CAS?
CAS is absolutely free of charge to a unit holder

 

What will be the basis for consolidation across other fund houses?
Investors will be identified across fund houses by their permanent account number - PAN for the purposes of a Consolidated Account Statement. Holding pattern in the folios determines CAS. For example if unit holders A, B and C are all unit holders in a particular folio, all folios within the Fund House and across mutual funds with a similar holding pattern will be classified for consolidation purposes  

 

What types of transactions / folios will be included or aggregated for CAS?
CAS will include only those folios in which financial transactions have taken place during the month. e.g. if you have three folios and but you transact in only two folios during the month, then CAS for the month will include only the two folios and not the folio where there were no transactions.  

 

Which kind of financial transactions will be included in CAS?
CAS will include all types of financial transactions like subscriptions including NFOs, redemptions including those under fixed maturity plans, switches, systematic transactions like SIP, SWP, STP etc, dividend payouts or reinvestments, etc.  

 

Will I receive CAS for a non-financial transaction?
CAS will not be sent for Non-Financial transaction like change of bank mandate, contact details, updation of nominee etc. However, a separate communication will be sent to you for these transactions  

 

If I have updated my address, will it be included in CAS?
Address changes, if any, will reflect in your statement and CAS will be sent to the new address. However, please note that the address available with our Registrar and Transfer Agent as on the date of consolidating your statement will be considered for mailing. In the event of the address being changed at any other time, your next CAS will be sent to the new address  

 

I hold units in demat mode. Will I get a CAS?
Transactions routed through the exchange mechanism and those submitted to us with a request to demat the units, will not be included in the CAS. A demat account statement, issued by your depository participant, should reflect the units towards such transactions.  

 

What other details will be included under a CAS?
Apart from details of financial transactions, opening and closing unit balances in each folio, CAS will also reflect the email id registered, nominee registration status, mode of holding, KYC status, etc. In the interest of the security of your data certain sensitive information like registered bank account details, nominee name, PAN and contact details will not be included in CAS.  

 

How do I ensure that my details are properly recorded by the Registrar and Transfer Agent?
Canara Robeco Mutual Fund will continue to send an account statement first time for every new folio separately with all details registered (these will be unmasked) in the folio. This will help you to verify all the details. Additionally, as mentioned earlier in this FAQ, a separate communication will be sent to you as and when you request for changes in any of the registered details like change in bank account, address, contact details, nomination etc.  

 

I have updated different addresses across Mutual Funds. Where will the CAS be sent?
For all folios, which are KYC compliant, CAS will be sent to the address of the investor as used while filling up the KYC application form. However, for non KYC folios and all presumably have different addresses, they will get consolidated (basis being PAN exists in all folios). CAS will be sent to the address registered in the folio where the last financial transaction took place. We strongly urge you to update your PAN and KYC details in all folios in across mutual funds by approaching respective mutual funds or their Registrar and Transfer Agents (RTA). This will enable you to take the unique advantage of a CAS - a unified / single view of your entire Mutual Fund holdings  

 

I have provided my email to all MFs. Will I still get a physical CAS?
Currently a physical CAS will be sent by post, even if an email id is registered in any or all folios. Very shortly, CAS will be sent via email to the email id registered in any of the folios. We strongly urge you to verify the email ids (registered in each folio) and update a single email id across all folios, for better convenience.  

 

What if my mail for CAS bounces?
If your mail bounces, a physical statement will be printed and dispatched to your registered address  

 

Will I get any individual statement from the AMC?
In addition to CAS, you will continue to receive account statements electronically after each financial transaction but within 5 working days in folios with registered email ID's. Where folios do not have a email registered, a monthly CAS will be sent. However, you are free to request for a statement whenever you wish to and we will dispatch the same to you.  

 

What if I find some of the folios missing in my CAS?
To avoid such situations where folios are excluded, we once again urge you to take stock of all your folios across mutual funds and ensure that your KYC status is updated, PAN is verified, e-mail IDs and Mobile numbers are provided, for us to provide better service and convenience to you.

  • If you find some of your folios are not reflected in CAS, please check the following Whether the folio has any financial transaction, as CAS includes only the folios with financial transactions
  • If yes, whether the PAN of all the unit holders has been updated in the folio?
  • If no, you should get PAN of all unit holders updated in the folio/s for future inclusion in CAS.
  • If PAN is already updated, you can check with the respective mutual fund about the discrepancy.

 

In case of any discrepancy in folios related details in CAS, what should I do?
You can approach the respective Mutual Fund/s (where there is a discrepancy in a particular folio with a Fund) for any discrepancy in financial transactions, folio details printed in CAS or for any other queries.  

 

What if there are no transactions in a folio for a long period?
Unit holders whose folios do not have a financial transaction in a half-year period ending September or March will be sent a CAS in the following month, detailing the holding at the end of such six month period.  

 

How do I discontinue / opt out of CAS?
Currently this provision is not offered to investors.

 

I wish to received folio level statements regularly
You will receive transaction level account statements / transaction confirmations electronically (i.e. if an email ID is registered or a mobile number is available) after each such financial transaction but within 5 working days. Unit holders whose folios have no email id registered will receive a monthly CAS. Nevertheless, you may request for a folio level statement of account whenever you wish and we will dispatch the same to you.

Canara Robeco GOLD ETF (An Open-ended Exchange Traded Fund)

What is an Exchange Traded Fund (ETF)?
An ETF is a fund whose units are listed on stock exchanges. Units can be bought and sold just like stocks at prices, which may be close to the NAV of the scheme. Most ETFs track an underlying security or group of securities like index, sector stocks or commodities like gold.
ETFs are an attractive investment avenue due to their lower costs, as compared to other forms of investing, and tax efficiency.  

 

What is Gold ETF?
A Gold ETF is an ETF whose assets are invested in gold bullion with the objective of generating returns that are in line with the performance of gold (and gold related instruments including derivatives - as and when permitted by SEBI) subject to tracking errors.  

 

How is fund managed? Active or Passive?
These are passively managed funds and are designed to provide returns that would closely track the returns from physical gold in the spot market.  

 

How do Gold ETFs differ from physical gold?
Unlike physical gold, Gold ETFs are held in demat / electronic form and can be traded on a stock exchange just like buying and selling stocks.  

 

How are Gold ETFs better than physical gold?
Gold ETFs score over physical gold, because they eliminate the hassles and drawbacks of physical gold (e.g. impurity risk), are more tax-efficient and allow you to invest in small amounts.  

 

How are Gold ETFs better than Gold Funds?
Gold ETFs are better than Gold Funds because in comparison to Gold Funds, Gold ETFs are less volatile. While gold ETFs invest in physical gold, Gold Funds invest in equities of gold mining companies; and gold stocks are more leveraged to the gold prices than the gold itself.  

 

Who are Authorised Participants (APs) and Large Investors?
The member(s) of NSE or any other recognized stock exchange and their nominated entities/ persons are appointed by the AMC to act as an Authorised Participants for the Scheme. They act as market makers to improve the liquidity of ETF on the exchanges. The APs provide quotes in the exchange and ensure that investors have a ready buyer and seller any time they wish to enter into a transaction during market hours. After the NFO, only AP's and Large Investors can create/ redeem Units directly with the Mutual Fund.
Large investors are investors who buy Units in Creation Unit Size. Presently this size is 1000 Units and is equivalent to 1 kg of physical gold. Large investors can directly create or redeem the Units in lieu of physical gold of 1 kg and multiples thereof from the AMC if they so desire. Please do refer to the Scheme Information Document for more information on the same.

 

How does one invest in Canara Robeco Gold ETF after the NFO?
After the NFO, Units of the Scheme will be listed on the National Stock Exchange of India Ltd (NSE). Investors can buy or sell units on a continuous basis on the NSE on which the units are listed during the trading hours on all the trading days like any other publicly traded stock at prices which may be close to the NAV of the scheme.
Subscriptions made through Stock Exchanges will be made compulsorily in demat mode by specifying the number of Units to be subscribed and not the amount to be invested. The minimum number of units that can be brought or sold through the NSE is 1 (one) Unit of HGETF.
Further, the Scheme would be open for subscription (Purchase/ redemption) only for Authorized Participants and large investors in "Creation Unit Size" on all business days from the date of listing at NAV based prices.  

 

Can one invest in the CRGETF through a Systematic Investment / Transfer Plan?
Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), Canara Robeco FLEX STP, Systematic Withdrawal Advantage Plan (SWAP), Dividend Transfer Plan (DTP) are not available under this scheme.  

 

What are the plans / options available under the CRGETF?
Currently, there are no Investment Plans / Options being offered under the Scheme. However, the Trustee reserves the right to introduce investment plan / options under the Scheme at a future date in accordance with SEBI (MF) Regulations.  

 

What is the purity of the underlying gold?
Gold ETFs invest in standard gold bullion with purity (fineness) of 995 parts per1,000 (99.5%) or higher.  

 

How will AMC check the quality of the gold that your Authorised Participants (APs) will deposit with custodian?
The custodian will accept physical gold only if the gold is in the compliance with the Good Delivery norms specified by LBMA as described in the SID. The Custodian will also ensure that Gold bars deposited with it indicate that the fineness is 995 or above.  

 

Can I exchange Units of Gold ETF for gold?
No (except for Authorised Participants and Large Investors). Delivery of the gold will be at the location of the Custodian within the jurisdiction of Mumbai.  

 

How are Gold ETFs taxed under Income Tax Act, 1961?
Gold ETFs schemes are treated like non-equity mutual funds for the purpose of taxation. So, the gains attract short term capital gains (STCG) tax if held for less than one year and long term capital gains (LTCG) tax if the period of holding is more than a year.

For futher details please refer to the Scheme Information Document (SID), which is available on our website http://www.CanaraRobeco.com/, and at the ISCs/ Bank Collection Centres of Canara Robeco Mutual Fund. Investors can also contact us on 1800 233 6767 (toll free) or send an email at xyz@Canara Robecound.com.

Disclaimer:The responses in the FAQs alone are not sufficient and should not be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. While utmost care has been exercised while preparing the FAQs, Canara Robeco Mutual Fund / Canara Robeco Asset Management Company Limited (Canara Robeco AMC) does not warrant the completeness and absolute accuracy or completeness of this information and disclaims all liabilities, losses and damages arising out of the use of this information. The recipient alone shall be fully responsible / liable for any decision taken on the basis of this material. The recipient before investing in this Scheme should make his or her own investigation and seek appropriate professional advice.Please read the Scheme Information Document of the Scheme and the Statement of Additional Information before investing.

The Facility of Registering Multiple Bank Accounts in a Folio

What is the facility of registering multiple bank accounts in a folio?

Canara Robeco Mutual Fund offers a facility for registering upto 5 bank accounts in a folio for receiving redemption proceeds. You have to specify any one bank account as "Default" and can register upto 4 additional bank accounts. Upon registration, you can opt to receive redemption proceeds into any one of the registered bank accounts without providing any supporting documents at the time of redemption. Supporting documents for all the bank accounts have to be submitted with the registration form for multiple bank accounts. Dividend proceeds will be processed into the "Default" bank account only.  

 

Why should I opt for this facility?

Registering for this facility enables you to receive redemption proceeds into any one of the registered bank accounts without providing any supporting documents at the time of redemption. This enables you to receive redemption proceeds into the bank account of your choice.  

 

What is a "Default" bank account?

At the time of registering for this facility, you have to specify any one bank account as a Default" bank account. This account is used for redemption processing in case you do not specify the bank account in the request for redemption of units. Dividend proceeds, if any, are processed into the "Default" bank account only.  

 

Which bank account will be used for dividend proceeds?

Dividend proceeds, if any, are processed into the "Default" bank account only.  

 

When will redemption be processed into the "default" bank account?

Redemption is processed into the "default" bank account in the following scenarios:

  • No bank account is mentioned in the redemption request for receiving redemption proceeds
  • Details of the "Default" bank account are mentioned in the redemption request for receiving redemption proceeds
  • Maturity of investments in FMP schemes
  • In case you have already 2, 3 or 4 bank accounts in your folio and provide a new bank account for redemption along with the redemption request without complete / correct supporting documents.

 

Can I add one or more bank accounts to those already registered in my folio?

Yes. The application form for registration for this facility has to be used for adding one or more accounts. However, the maximum number of bank accounts that can be registered in a folio is 5.

 

Can I change the bank accounts registered in my folio?

Yes. Any registered bank account including the "Default" bank account can be changed / replaced. A separate form is available for this purpose. We request you to refer to the addendum dated June 4, 2009 which specifies the aforesaid documentation requirements.  

 

Can I delete one or more of the bank accounts registered in my folio?

Yes. You may submit a request specifying the bank account to be deleted from you folio. In case the "Default" bank account has to be deleted, please ensure that you specify the new bank account to be treated as "Default".

 

Can I replace the "default" bank account with another bank account already registered in my folio?

Yes. You have to submit a separate form for this purpose. No supporting documents have to be submitted along with the application form.  

 

What are valid supporting documents for a bank account?

Any of the following documents are valid supporting documents for a bank account:
We request you to refer to the addendum dated June 4, 2009 which specifies the aforesaid documentation requirements.  

  • A cancelled original cheque leaf (where the account number and first Unitholder name is printed on the face of the cheque). Unitholders should without fail cancel the cheque and write 'Cancelled' on the face of it to prevent any possible misuse.
  • A letter from the bank on its letterhead certifying that the Unitholder maintains/maintained an account with the bank, the bank account information like bank account number, bank branch, account type, the MICR code of the branch & IFSC Code (where available). The letter should be certified by the bank manager with his / her full signature, name, employee code, bank seal and contact number.
  • A copy of the bank pass book or a statement of bank account having the name and address of the account holder and account number. The copy should be certified by the bank manager with his / her full signature, name, employee code, bank seal and contact number.
  • Unitholders may also bring a copy of any of the documents mentioned in (3) above along with the original documents to the ISCs/Official Points of Acceptance of Canara Robeco Mutual Fund. The copy of such documents will be verified with the original documents to the satisfaction of Canara Robeco Mutual Fund. The originals documents will be returned across the counter to the Unitholder after due verification.

 

What are the documents to be submitted for registration for this facility?

To register for multiple bank accounts in your folio, valid supporting documents should be submitted for the following bank accounts:

  • Any one of the existing bank accounts in the folio
  • All the bank accounts mentioned in the application form for registration of multiple bank accounts

 

What are the documents to be submitted for additions / changes / deletion of bank account?

To add one or more bank accounts in your folio after registering for multiple bank accounts, valid supporting documents should be submitted for the following bank accounts:
To change a bank account in your folio after registering for multiple bank accounts, valid supporting documents should be submitted for the following bank accounts:
To delete a bank account from your folio after registering for multiple bank accounts, no supporting documents have to be submitted.

  • Any one of the registered bank accounts in the folio
  • The new bank account(s) which has/have to be added to the list of bank accounts registered in the folio
  • The bank account which is being replaced
  • The new bank account(s) which has/have to be added to the list of bank accounts registered in the folio

 

What if I do not mention the bank account in the redemption request?

In case no bank account details are mentioned in the redemption request, the redemption proceeds areprocessed into the "Default" bank account. Canara Robeco Mutual Fund or Canara Robeco Asset Management Company Ltd. will not be liable for any loss arising to you due to the credit of redemption proceeds into any of the bank accounts registered with us in your folio.  

 

Can I provide a new bank account for redemption along with the redemption request?

In case you have registered 2, 3 or 4 bank accounts for your folio, you can provide a new bank account for redemption along with the redemption request. Valid supporting documents for any one of the bank accounts already registered for your folio as well as the new bank account sought to be added for the folio should be submitted with the redemption request. Subject to proper documentation, the redemption will be processed into the new bank account and the account will be registered in the folio. In case the supporting documents provided by you are incomplete / incorrect, the redemption proceeds will be credited into the bank account registered as "Default" in your folio and the account will be not be registered in the folio.

In case you have already registered 5 bank accounts for your folio, you cannot provide a new bank account for redemption along with the redemption request. Any changes to the registered bank accounts have to be communicated separately to us using the application form for registration / addition of bank accounts. The changes will be effected within 10 calendar days from the date of submission of the application form.  

 

How many days are required for registration for the facility?

The registration process is completed after 10 calendar days from the date of submission of the application form for the facility at any of our official points of acceptance.  

 

How can I opt out of the facility?

To opt out of the facility of registration of multiple bank accounts, you may submit a letter indicating the same and specifying the bank account to be retained in the folio for redemptions / dividends in future. In case you submit a request for deleting bank accounts which reduce the number of bank accounts in the folio to one, it will be construed as a request for opting out of the facility of registration of multiple bank accounts. The bank account that is retained in the folio will be used for processing any redemptions / dividends for all the schemes in the folio thereafter.  

 

How will I know that my request for registration has been completed?

A letter intimating the registration of the bank accounts for the facility will be sent to you within 2 weeks of the date of submission of the application form for the facility at any of our official points of acceptance. Additionally, SMS and emails will be sent to investors who have provided their mobile number and email ID respectively. You are requested to verify the contents of the confirmation letter sent to you and contact us immediately in case of any discrepancy(ies).
We would like to communicate electronically to you, if possible, for important changes to your folio. Hence, if you provide us with your mobile contact number / email ID, we would - most importantly - be able to reach you faster to keep you abreast of transactions / changes in your folio.  

 

How will I know the bank accounts registered in my folio?

In the letter intimating the registration for the facility, the complete bank account details registered for your folio will be mentioned. Additionally, the account statement will reflect the details of the bank accounts registered in the folio. In the interest of the security of your bank account information, the account statement will reflect a maximum of 4 digits of each account number.
 

Can I delete the "default" bank account?

No. The "default" bank account can't be deleted. However, you can change the same.  

 

Can the bank accounts be updated for specific schemes in my folio?

No. Bank accounts registered in the folio vide this facility are applicable for all schemes in the folio.  

 

The mode of operating my folio is "Joint". Is the joint holder's signature required for registration of this facility?
Yes.  

 

Can I register more than 5 bank accounts in a folio?

No.  

 

In case any credit into my bank account vide direct credit / RTGS / NEFT is rejected by my banker, will the redemption / dividend proceeds be credited into the other account registered for my folio?

No. In case of a rejection of our instructions for direct credit / RTGS / NEFT, we will endeavour to contact you for the further course of action. In case we are unable to do so or get a response from you, a cheque shall be issued to you against the redemption / dividend proceeds.  

 

Can I register for less than 5 bank accounts in my folio?

Yes. You may register 2, 3, 4 of 5 bank accounts in your folio under this facility.  

 

Can I opt for receiving direct credit for one or more of my bank accounts and NEFT / RTGS transfer into the other bank account(s)?
Yes. We recommend that you opt for electronic receipt of redemption / dividend for all the bank accounts registered with Canara Robeco Mutual Fund for receiving redemption / dividend proceeds.  

 

Do I need to use separate a application form for each folio that I have with Canara Robeco Mutual Fund for registering for multiple bank accounts?

No. You may use 1 application form for upto 6 folios held by you if the joint holders and the mode of holding are the same. For additional folios, new application forms have to be submitted. In case you have numerous folios with Canara Robeco Mutual Fund, we recommend that you consolidate all your investments into one folio.  

 

Can I provide the bank account details of my SB as well as NRE accounts in the same folio?

No. For a folio, all the bank accounts for receiving redemption / dividend proceeds should be of type SB or NRO in case the investments are made vide SB or NRO accounts. If investments are made vide NRE accounts, all the bank accounts registered for redemption should be of type NRE only.

  

Do I have to submit any additional supporting documents for registering an NRE account for redemption in my folio?No. However, please note that for receiving redemption / dividend proceeds into your NRE account, the Foreign Inward Remittance Certificate (FIRC) for each underlying investment has to be submitted to Canara Robeco Mutual Fund. For additional details in this regard, please contact any of our Investor Service Centres.  

 

Can I provide the bank account(s) of any other person to receive the redemption / dividend proceeds in my folio?No. You have to submit valid supporting documents for each bank account that you wish to register for receiving redemption / dividend proceeds in your folio. These documents should conclusively prove that the bank accounts provided pertain the sole / first unit holder in the folio.

SEBI Circular on Permanent Account Number (PAN)

Why has PAN been made compulsory for transacting in Mutual Funds?
Securities and Exchange Board of India (SEBI) vide their circulars MRD/DoP/Cir-05/2007 dated April 27, 2007 and MRD/DoP/Cir-08/2007 dated June 25, 2007, has made Permanent Account Number (PAN), the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction, effective July 2, 2007. Hence, all investors would compulsorily have to provide their PAN details along with the original PAN card for verification.

 

Which category of investor needs to provide PAN?
The requirement of PAN applies to -

  • All unit holders in the folio, including Guardian(s)
  • Non Resident Indian (NRI) investors as well
  • Power of Attorney (PoA) holder,
  • Lien Holder

 

Do I need to submit PAN for all types of investments?
Yes, PAN needs to be submitted for all investments viz. New Purchases, Additional Purchases, Switches. New SIP registrations and in the event of Transmission of units or upon Minor becoming Major. The investor needs to be KYC compliant as well.

 

I wish to invest in Mutual Funds but I do not have a PAN. How do I go about it?
All existing and potential investors are permitted to invest in units of Mutual Fund only if he / she possesses a valid PAN card. Submission of PAN is mandatory for all investments as mentioned in point 3 above.

 

How do I apply for a PAN?
You may apply for a PAN at any of the agencies appointed by the Income Tax Department for accepting PAN applications.
The website links for applying for PAN are as under -

tin.tin.nsdl.com/pan/index.html

 

How do I get my PAN verified with the Mutual Fund?
Investors who do not have their PAN verified are requested to submit a copy of the PAN card along with the original PAN card for verification at our Investor Service Centre / KARVY Investor Service Centers. The original will be returned immediately across the counter after verification.

 

Do I need to attach a copy of my PAN card and provide my original PAN card for verification over the counter each time I invest?
No. This is a one-time process for investors who do not have their PAN verified in our records yet. Once the PAN is verified, it shall be useful for all future transactions.  

 

Do I need to submit the copy of the PAN card only along with a fresh / additional investment, or can that be done at my convenience?
An investor must submit the PAN details along with all investments. However, if an investor has an existing folio with us, he/ she must get his/her PAN verified at the earliest, even if s/he wishes to transact at a later point of time.  

 

I am a Non Resident Indian. Do I still need to have a PAN if I wish to invest in Indian Mutual Funds?
PAN has been made compulsory for all investors irrespective of the tax status or the amount of investment.  

I have invested less than Rs 50,000.00 in a Mutual Fund. Do I still need to have my PAN verified or would I be required to get my PAN verified only when my investment exceeds a valuation of Rs 50,000.00?
Yes. Effective 1st January 2011 PAN has been made mandatory for any investment in Mutual Funds (as mentioned in point 3 above) irrespective of the investment amount.

 

I am not assessed to Income Tax. Am I still required to procure a PAN and get it verified?
Yes, PAN has been made compulsory for investing in units of Mutual Funds and also to strengthen the Know Your Client (KYC) norms.  

 

I have procured a Mutual Fund Identification Number (MIN) recently and also undergone KYC compliance with your fund house. Is it mandatory for me to submit my PAN proof again?
Erstwhile MIN was a requirement to meet the obligations of the Prevention of Money Laundering Act, 2002 (PMLA). However, PAN is a requirement under SEBI regulations and also under Income Tax Act, 1961. Hence, you are required to get your PAN details verified.
KYC norms however, remain unchanged and PAN is now the sole identification number.  

 

Currently I am out of India. Can I send scanned copy of my PAN card or fax the same for verification?
No, you would be required to provide us with the original for us to verify the same. Alternatively, you may send us a true copy of your PAN card attested by the Notary Public, Gazetted Officer, Manager of a Scheduled Commercial Bank (Name, Designation and Seal should be affixed on the copy) or by an official from the local office of the Indian Embassy / Consulate. Please refer new KRA Norms  

 

I am a Non Resident Indian (NRI). How do I apply for a PAN?
You may apply for a PAN online with the Income Tax website (please refer to point number 5 above for details).  

 

Would my application be rejected if I mention my PAN number in my application form but inadvertently miss out attaching the copy of the PAN card?
Yes. Both application form and copy of PAN, duly verified by us, is a must for processing of any application. Applications without PAN details and a copy of the PAN card will be deemed as incomplete.  

 

I invest through my Agent / Distributor who submits my application form at the Mutual Fund office. How am I supposed to get my PAN verified?
In such a case, your Agent / Distributor must verify your PAN with the original PAN card and then submit to us. PAN verified by an Agent / Distributor shall be accepted provided the Agent / Distributor affixes his ARN seal along with his signature and name on the PAN card copy with the words "Verified with the original PAN Card" The Agent / Distributor should be the same as the one on the investment application form.  

 

Can I get my PAN verified by any other entity?
You may submit PAN attested by the Notary Public, Gazetted Officer, Manager of a Scheduled Commercial Bank or by the Indian Embassy / Consulate. Name, Designation and Seal along with the signature should be affixed on the copy with the words "Verified with the original PAN Card"  

 

The joint holder of my folio is not assessed to tax and hence, does not have a PAN. How do I invest in Mutual Fund units in such a case?
All applicants / joint holders of Mutual Fund units need to have a valid PAN.  

 

What if my PAN verification fails? Will the units allotted to me be forfeited?
For the cases wherein the PAN verification fails, the investors would be contacted by us. If we fail to get the same regularized, the investment amount is liable to get redeemed / refunded, and the folio is liable to be locked for further transactions.  

 

I hold multiple folios but my PAN is verifyed in one of the folios. Does it get verified for the other folios automatically?
No. You must intimate to us in writing, signed by all Unitholder(s) as per the mode of holding, mentioning your folio number(s) on a separate sheet in order to enable us to update your record. You must ensure that all unit holders (i.e., first and all joint holders) have the PAN verified too.
However, we strongly recommend, that you consolidate all folios (certain conditions apply) for your own convenience.  

 

My account statement shows PAN details and verification status as "Yes". Do I need to submit any other document?
Since this is a new requirement, please ensure that you give a copy of PAN card duly verified. If you have done so and have an acknowledgement from us, you need not take any action.
Mutual Funds are required to counter verify the details from the Income Tax website or the KARVY website. Your PAN card copy, duly verified will help us in case of any discrepancy.  

 

My account statement shows PAN details and verification status as "No". Do I need to submit my PAN proof?
Yes, you must get your PAN details verified with us immediately, in order to be able to carry out transactions.  

 

Is there anyway I can ascertain if my PAN details with you are validated?
Yes. We recommend that you visit the website of our Registrar & Transfer Agent (RTA), KARVY You may enter your PAN on the site, wherein, the link is provided in order to enable you to ascertain the status.

If your PAN is verified, please send us a list of all your folios quoting the verification status on this website. This is applicable for all unit holders of the folio.

 

If I / we do not have a copy of the PAN card but have an intimation of my / our PAN card from the Income Tax authorities, will it suffice?
No. As per SEBI circulars, we are required to verify the original PAN card.

Qualified Foreign Investors (QFI)

QFI-Eligibility Conditions

Who is Qualified Foreign Investors (QFI)?
In brief, QFIs shall include individuals, groups or associations, Resident in a country that is a member of Financial Action Task Force (FATF) or a country that is a member of a group which is a member of FATF and resident in a country that is a signatory to IOSCO’s MMOU (Appendix A Signatories) or a signatory of a bilateral MOU with Securities and Exchange Board of India (SEBI). QFIs do not include FIIs/Sub accounts/ Foreign Venture Capital Investor. The definition of QFI is available at following link:
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1342784172262.pdf  

 

Residents of which countries shall be eligible to invest as QFIs?
Residents of the following countries shall be eligible to invest as QFI as per the definition mentioned in Sr. No. 1 above.

S No.

Name of Country

FATF member

IOSCO MMOU

Bilateral MOU with SEBI

1

AUSTRALIA

YES

YES

NA

2

AUSTRIA

YES

YES

NA

3

BAHRAIN

YES-GCC

YES

NA

4

BELGIUM

YES

YES

NA

5

BRAZIL

YES

YES

NA

6

BULGARIA

YES-EU/EC

YES

NA

7

CANADA

YES

YES

NA

8

CHINA

YES

YES

NA

9

CYPRUS

YES-EU/EC

YES

NA

10

CZECH REPUBLIC

YES-EU/EC

YES

NA

11

DENMARK

YES

YES

NA

12

ESTONIA

YES-EU/EC

YES

NA

13

FINLAND

YES

YES

NA

 

Disclaimer: The QFI framework has been put in place by SEBI circulars dated August 09, 2011 and January 13, 2012 and subsequent circular on the matter.
These FAQs are prepared with a view to help QFI applicants to get generic understanding of the framework. These FAQs cannot be used in a court of law to interpret any circular, rules, regulations, statutes etc., one way or the other.
While the FAQs are updated as and when the regulatory environment undergo changes, any queries about the same can be addressed to the www.sebi.gov.in

 

S No.

Name of Country

FATF member

IOSCO MMOU

Bilateral MOU with SEBI

14

FRANCE

YES

YES

NA

15

GERMANY

YES

YES

NA

16

GREECE

YES

YES

NA

17

HONG KONG

YES

YES

NA

18

HUNGARY

YES-EU/EC

YES

NA

19

ICELAND

YES

YES

NA

20

ITALY

YES

YES

NA

21

JAPAN

YES

YES

NA

22

REPUBLIC OF

YES

YES

NA

23

LITHUANIA

YES-EU/EC

YES

NA

24

LUXEMBOURG

YES

YES

NA

25

MALTA

YES-EU/EC

YES

NA

26

MEXICO

YES

YES

NA

27

NETHERLANDS

YES

YES

NA

28

NEW ZEALAND

YES

YES

NA

29

NORWAY

YES

YES

NA

30

OMAN

YES-GCC

YES

NA

31

POLAND

YES-EU/EC

YES

NA

32

PORTUGAL

YES

YES

NA

33

ROMANIA

YES-EU/EC

YES

NA

34

RUSSIA

YES

NO

YES

35

SAUDI ARABIA

YES-GCC

YES

NA

36

SINGAPORE

YES

YES

NA

37

SLOVAKIA

YES-EU/EC

YES

NA

38

SLOVENIA

YES-EU/EC

YES

NA

39

SOUTH AFRICA

YES

YES

NA

40

SPAIN

YES

YES

NA

41

SWEDEN

YES

YES

NA

42

SWITZERLAND

YES

YES

NA

43

UAE

YES-GCC

NO

YES

44

UNITED KINGDOM

YES

YES

NA

45

UNITED STATES OF

YES

YES

NA

 

The above list has been prepared based on the information as available on websites of FATF and IOSCO as on May 21, 2012. European Commission (EC), an executive body of European Union (EU), is a member of FATF. Hence, EU has been reckoned for the purpose of eligible countries. Please note that this list is subject to change. Therefore, you are requested to access the relevant websites for updated details.
FATF Member link: http://www.fatf-gafi.org/pages/aboutus/membersandobservers/#d.en.3147 IOSCO MMOU
Signatories link: http://www.iosco.org/library/index.cfm?
section=mou_siglist  

 

Can a Non Resident Indians (NRI) make investments by opening a demat account through QFI Route.
An NRI cannot make investments simultaneously through the QFI route and portfolio investment scheme (PIS) route. However, a NRI can open demat account as QFI and make investments through this route provided he has closed all his demat account(s) opened as an NRI.  

 

Can the same person/ entity make investments through Foreign Direct Investment (FDI) and QFI routes?
Yes. The same person/ entity can make investment through FDI and QFI route. However, where a person invests in a company through both FDI and QFI route, the aggregate holding of such person in the company shall not exceed five percent of paid up equity capital of the company at any point of time. This limit shall be applicable to each class of equity shares having separate and distinct International Securities Identification Number (ISIN). This shall be subject to guidelines on FDI as prescribed by Government of India (GoI) and Reserve Bank of India (RBI) from time to time. For list of ISINs please check the NSDL website. To search company-wise ISINs please click at https://nsdl.co.in/downloadables/list-codes.php  

 

Is there any cap on the maximum shareholding limit by QFI?
Yes. The total shareholding by a QFI cannot exceed five percent of the paid up equity capital of any company at any point of time. This limit shall be applicable to each class of equity shares having separate and distinct ISIN. Further, the aggregate shareholding of all QFIs shall not exceed ten percent of the paid up equity capital of the company at any point of time, in respect of each equity share class having separate and distinct ISIN.  

 

Who is an Ultimate Beneficial Owner?
The ultimate beneficial owner is the natural person or persons who ultimately own, control or influence a client and/or persons on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement. The definition of Ultimate Beneficial Owner is provided under the SEBI Master circular on anti-money laundering (AML) and combating the financing of terrorism (CFT) AML/CFT. The Qualified Depository Participant (QDP) shall be guided by the SEBI Master circular on AML/CFT as updated by SEBI from time to time. The latest SEBI’s Master Circular on AML/CFT is available at following link:
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1295933371907.pdf  

 

Can the same set of ultimate beneficial owner(s) use multiple routes to channelize investments in Indian equities?
No. Except for FDI, the same set of ultimate beneficial owners(s), who intend to make investments through the QFI route, shall not directly or indirectly channelize investments simultaneously into Indian equities using any other available route such as NRI, FII, Sub Account or FVCI.  

 

What is an opaque structure ?
Any structure such as Protected Cell Company (PCC), Segregated Cell Company (SPC) or equivalent should be deemed to be opaque structure. While there is no exhaustive list of opaque structures, the qualified DP should be guided by the following principles:
The details of ultimate beneficial owner(s) should be accessible at all the times. The definition of ultimate beneficial owner is provided under the SEBI Master circular on AML/CFT. The qualified DP shall be guided by the SEBI Master circular on AML/CFT as updated by SEBI from time to time. The structure should not ring fence the assets and liabilities of different pools of fund. The structure should not ring fence the pools of funds from enforcement.  

 

QFI- Investment Opportunities & Options

 

What are the permissible transactions allowed for QFI’s investing into Indian securities?
QFIs can transact only in the following:
Purchase/subscription of mutual fund units through Demat Account mode (Direct Route) and Unit Confirmation Receipt (UCR) [Indirect Route]. For details of Direct Route and Indirect Route, please see the following link:
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1312859496065.pdf
a. Purchase/subscription of mutual fund units through Demat Account mode (Direct Route) and Unit Confirmation Receipt (UCR) [Indirect Route]. For details of Direct Route and Indirect Route, please see the following link: http://www.sebi.gov.in/cms/sebi_data/attachdocs/1312859496065.pdf
b. Purchase of equity shares in public issues, to be listed on recognised stock exchange(s).
c. Purchase of listed equity shares through SEBI registered stock brokers, on recognized stock exchanges in India.
d. Redemption of mutual fund units purchased/subscribed through direct and indirect route.
e. Sale of equity shares which are held in their demat account through SEBI registered stock brokers.
f. Subscription of equity shares against rights issues.
g. Receipt of bonus shares or receipt of shares on stock split/ consolidation.
h. Receipt of equity shares due to amalgamation, demerger or such other corporate actions, subject to the investment limits.
i. Receipt of dividends and interest payments.
j. Tender equity shares in open offer in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
k. Tender equity shares in open offer in accordance with SEBI (Delisting of Equity Shares) Regulations, 2009.
l. Tender equity shares in case of buy-back by listed companies in accordance with SEBI (Buyback of Securities) Regulations, 1998
m. Purchase and sale of corporate debt securities listed on recognized stock exchange(s);
n. Purchase of corporate debt securities through public issues, if the listing on recognized stock exchange(s) is committed to be done as per the extant provisions of the Companies Act, 1956;
o. Sale of corporate debt securities by way of buyback or redemption by the issuer;
p. Purchase and sale of units of debt schemes of Indian mutual funds.
 

What are the different ways in which QFI can invest in Mutual Fund units?
As stated in point (a) of Question No. 9 above, QFI has two different options for investing in MF units:
a. Demat mode – Direct route
b. Unit Confirmation Receipt (UCR) – Indirect route  

 

How does QFI invest in MF under Direct route?
QFI has to first remit the funds to its single non-interest bearing rupee account and then place the order through the QDP by providing details of the investment.The details are available at:
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1312859496065.pdf  

 

How does QFI redeem his Mutual Fund units?
QFI has to place his redemption request with the QDP, who in turn will place it with the respective Mutual Fund.The details are available at:
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1312859496065.pdf  

 

Can QFI transfer the MF units?
No. Investment in MF units are non -transferable and non-tradeable. They can, however, be redeemed. The details are available at:http://www.sebi.gov.in/cms/sebi_data/attachdocs/1312859496065.pdf  

 

Can QFI pledge MF units / UCR?
No.  

 

Can QFI Switch his investments between schemes of the same AMC?
No.  

 

Can QFI subscribe to Systematic Investment/Transfer/Withdrawal plans as they are available to Indians?
No.  

 

Can QFIs open bank account in India?
Yes. A QFI may open a single non-interest bearing Rupee account with an AD Category –I bank in India subject to terms and conditions specified under FEMA, 1999 from time to time. The QDP shall operate this single non-interest bearing Rupee account for all investments made by QFI in India.  

 

Should QFIs remit funds before making purchase?
Yes. Funds should be received in the single non-interest bearing rupee account of the QFI before execution of the purchase order. The transactions by QFI are required to be pre-funded.  

 

Is a QFI required to repatriate the funds lying in its non-interest bearing Rupee Account within a stipulated time?
No. A QFI is not required to repatriate the funds lying in its non-interest bearing Rupee Account within any stipulated time.  

 

Is there any restriction on QFI to open more than one demat account?
Yes. At any point of time a QFI can open only one demat account with any of the qualified DPs. Further, purchase and sale of all eligible securities should be transacted through that demat account only.  

 

Is there any restriction on QFI to open more than one trading account?
No. A QFI can open trading account with more than one stock broker. However, all the transactions of the QFI need to be routed through its qualified DP.  

 

What will be the relationship between the QFI and his stock broker?
The QFI and his stock broker shall share the client broker relationship. For this purpose, the QFI shall fulfill the requisite formalities, as prescribed, from time to time.  

 

Can a QFI directly interact with a stock broker?
Yes. A QFI can directly interact with a stock broker provided the stock broker itself is the qualified DP or the stock broker has an arrangement with qualified DP for order routing, execution, confirmation, and reporting of trades.  

 

Can a QFI directly place order with a stock broker ?
No. A QFI cannot directly place order with a stock broker. The purchase/sale orders have to be placed with the qualified DP as provided under circular CIR/IMD/FII&C/3/2012 dated January 13, 2012.  

 

Is there any restriction on minimum volume of investment by QFI?
No. There is no restriction on the minimum volume of investment to be made by QFIs  

 

Is the investment through the QFI route freely repatriable?
Yes. The investment made through the QFI route is freely repatriable, subject payment of applicable taxes.  

 

Is it necessary for QFIs to appoint a local custodian in India?
QFIs are not mandated to appoint local custodian in India. However, in case a QFI wishes to appoint a custodian he may do so. A custodian of securities, if so appointed by QFI would be obligated to perform clearing and settlement of securities on behalf of the QFI client. However, no person shall be appointed as custodian by the QFI unless it is itself the qualified DP of the QFI and is also registered as custodian with SEBI under SEBI (Custodian of Securities) Regulations, 1996.  

 

Can the transaction details be modified by QFI?
Yes. The transaction details can be modified by QFI before the execution of such transaction. For this purpose, the QFI shall communicate the desired modification to the qualified DP, who, in turn, after his due diligence, will forward the same to broker.  

 

Can QFIs change their designated overseas bank account?
Yes. QFIs can change their overseas designated bank account. However, at any given point of time, there can be only one designated overseas bank account of the QFI through which funds are transferred to the Individual bank account of QFI in India.  

 

Is there any minimum lock-in period for investment made by QFI?
No. There is no minimum lock-in period for investment made by QFI.  

 

Can QFIs issue Offshore Derivative Instruments (ODI) or Participatory Notes (PNs)?
No. QFIs cannot issue Offshore Derivative Instruments or Participatory Notes

.  

Will QFIs be categorized as Qualified Institution Buyers (QIB) in a public offer?
No. The QFIs will be treated at par with the Indian Non-Institutional investors for the purpose of public offer of equity shares.  

 

Can QFIs invest through overseas pool accounts maintained with global custodians/ banks/ brokers ?
No, each and every QFI who intends to make investments as a QFI needs to open a separate demat account and follow the framework as provided in the circular dated January 13, 2012 and subsequent circulars on the subject. QFIs cannot invest through overseas pooled accounts or omnibus accounts maintained with global custodians/ banks/ brokers. The circular is available at: http://www.sebi.gov.in/cms/sebi_data/attachdocs/1326453304731.pdf  

 

Can QFIs engage in borrowing or lending or funds or securities?
No. QFIs cannot engage in borrowing or lending of funds or securities.  

 

Whether QFIs are allowed to do off market securities transfer?
No. QFIs cannot transfer securities off market. However, while changing the qualified DP, a QFI may transfer his securities from his demat account maintained with transferor qualified DP to the transferee qualified DP.  

 

What is QFIs responsibility with respect to Indian laws, rules and regulations?
QFIs shall, in relation to his activities as QFIs, at all times, subject themselves to the extant Indian laws, rules, regulations, circulars etc. issued from time to time. An express undertaking to this effect shall be obtained by qualified DP from the QFI.
Further, the QFI shall, as and when required by the Government, SEBI or any other regulatory agency in India, submit to that agency, as the case may be, any information, record or documents in relation to his activities as QFI. QFI has to give an express undertaking to this effect to the qualified DP.  

 

QFI Registration Process, Procedures & Documentation

 

How does an eligible person initiate the process to make investment through QFI route?
An eligible person intending to make investment through QFI route may contact any of the qualified DP registered with SEBI. The qualified DPs are mandated to perform the prescribed KYC and ensure fulfilment of the requisite conditions before allowing the applicant to open a demat account as QFI.

 

Is there any list of qualified DPs available?
The list of qualified DPs is available on SEBI website at the following link: http://www.sebi.gov.in/sebiweb/home/list/5/33/0/0/Recognised-Intermediaries  

 

What are the requirements for ongoing KYC of QFIs?
Every QFI shall undergo the same KYC procedure on an ongoing basis, as is applicable for Indian investors, in the manner as prescribed by SEBI and RBI, from time to time as well as extant guidelines on KYC procedures for single non-interest bearing Rupee account opened with AD Category-I bank in India.  

 

What documents are required to be submitted for KYC?
Following is the list of document to be submitted by a QFI for KYC as prescribed by SEBI vide circulars CIR/MIRSD/16/2011 dated August 22, 2011 and MIRSD/SE/Cir-21/2011 dated October 05, 2011:

Sr. No.

For QFIs who are individuals

For QFIs who are non-individuals

 

 

Corporate

Partnership firm

Trust

1

Form 49 AA of the Individual.

Form 49 AA of the company, whole directors/ directors charge of day to day operations, individual promoters holding control - either directly or indirectly

Form 49 AA of the partnership firm and partners

Form 49 AA of the trust and trustees

2

Passport/ Person of Indian Origin (PIO) Card/ Overseas Citizen of India (OCI) applicable

Passport of whole time directors/ two directors in charge of day to day operations

Passport of the partners

Passport of the trustees

3

Photograph

Photograph of whole time directors/ two directors in charge of day to day operations, individual promoters holding control - either directly or indirectly

Photograph of the partners

Photograph of the trustees

4

Proof of Identity (POI)(any one of the following documents):
Passport
Driving License
PAN card with photograph
Identity card/ document with applicant’s Photo, any of the Central/State Government its Statutory/Regulatory Authorities, Public Undertakings, Commercial Banks, Financial Institutions, affiliated to Professional Bodies Institute of Cost Accountants of India (ICAI) , Institute of Cost and Works Accountants India (ICWAI), Company Secretaries (ICSI), Bar Council etc., to their Members; and Credit cards/ issued by Banks

POI of the company, whole time directors/ two directors in charge of day to day operations, individual promoters holding control - either directly or indirectly

POI of the partnership firm and partners

POI of the trust and trustees

5

Proof of Address (POA)(any one of the following):
Passport
Voters Identity Card
Registered Lease or Sale
Agreement of Residence
Driving License
Flat Maintenance Bill Insurance Copy
Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill not more than 3 months old
Bank account statement/ passbook not more than 3 months old
Proof of address issued by any of the following:- Bank Managers of Scheduled Commercial Banks/ Scheduled Co-operative Bank/ Multinational Foreign Banks/ Gazetted Officer/ Notary Public/ Elected representatives to the Legislative Assembly/ Parliament/ Documents issued by any Govt. or Statutory Authority.
Identity card/document with address, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities and Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members.

POA of the company, whole time directors/ two directors in charge of day to day operations, individual promoters holding control - either directly or indirectly

POA of the partnership firm and partners

POA of the trust and trustees

Copies of all the documents submitted by the applicant should be self-attested and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be duly attested by entities authorized for attesting the documents.
Following documents shall be submitted by non individuals in addition to the above-mentioned documents:
 

Corporate

Partnership Firm

Trust

Copy of the balance sheets for the last 2 financial years (to be submitted every year).
Copy of latest share holding pattern including list of all those holding control, either directly or indirectly, in the company in terms of SEBI Takeover Regulations, duly certified by the company secretary/Whole time director/ MD (to be submitted every year)
Copies of the Memorandum and Articles of Association and certificate of incorporation.
Copy of the Board Resolution for investment in securities market.
Authorised signatories list with specimen signatures

Copy of the balance sheets for the last 2 financial years (to be submitted every year).
Certificate of registration (for registered partnership firms only).
Copy of partnership deed.
Authorised signatories list with specimen signatures.

Copy of the balance sheets for the last 2 financial years (to be submitted every year).
Certificate of registration (for registered trust only).
Copy of Trust deed.
List of trustees certified by managing trustees/CA.

 

Who can attest the documents which are submitted for KYC?
Originals of all the documents submitted for KYC shall be submitted along with the copies for verification. If a original is not submitted then the copy has to be attested by any one of the following:
Notary Public, Gazetted Officer, Manager of a Scheduled Commercial/ Co-operative Bank or Multinational Foreign Banks (Name, Designation, & Seal should be affixed on the copy) In case of NRIs/QFIs,, Notary Public, Court Magistrate, Judge, authorized officials of overseas branches of Scheduled Commercial Banks registered in India, Indian Embassy/ Consulate General in the country where the client resides. [The “scheduled bank” means a bank included in the Second Schedule of the Reserve Bank of India Act 1934 which also includes some foreign banks. The detailed list is at:
http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/RBIAM_230609.pdf]  

 

Does a QFI required to undergo "In Person Verification"?
"In Person Verification" is required in case of individual QFI investors as applicable for non-resident clients.
In case of non-resident clients including QFIs, employees at the stock broker’s local office, overseas can do in-person’ verification. Further, considering the infeasibility of carrying out ‘In-person’ verification of the non-resident clients by the stock broker’s staff, attestation of KYC documents by Notary Public, Court, Magistrate, Judge, authorized officials of overseas branches of Scheduled Commercial Banks registered in India, Indian Embassy / Consulate General in the country where the client resides may be permitted.  

 

Role and Responsibilities of Qualified DPs

 

Are qualified DPs required to comply with laws, rules and regulations of all jurisdictions where they carry out their operations?
The qualified DPs are required to comply with the extant laws, rules and regulations of jurisdictions where they carry out their operations in the capacity of qualified DP, such as solicitation of investments.

 

What action can a qualified DP take in case a QFI does not comply or violates guidelines/declaration/circulars?
In case of any violations by QFI a qualified DP is obliged to bring such instances to the notice of concerned depository and SEBI.  

 

How does the qualified DP ensure protection of his other clients?
The qualified DP shall not perform any acts or deeds with regard to QFI that puts any of his other client(s) at an disadvantageous position. The qualified DP shall deal with its QFI clients in a fair and impartial manner.

 

What declarations/undertakings are to be obtained from QFI by a qualified DP?
The qualified DP shall obtain appropriate declarations/undertakings as prescribed by depositories from time to time.  

 

What is the format for reporting of QFI holdings by a qualified DP to the depositories ?

The qualified DP shall report QFI holdings in the format prescribed by the depositories from time to time.  

 

Whether the pre trade limit of QFI is monitored by qualified DP?

Yes. The qualified DP will route the order to the broker only after checking applicable limits.

Fixed Maturity Plan - Post listing requirements

How do I apply for units of a Fixed Maturity Plan?

The investor can apply for the units using the application form attached to Key Information Memorandum (KIM) and submit the same to any Collection Centres (Canara Robeco Bank Ltd) / ISCs / Official Points of Acceptance of Canara Robeco Mutual Fund ('the Fund') during the New Fund Offer period.  

 

Is it compulsory to hold units in demat form?

The investors applying for subscription of units of Canara Robeco FMP Schemes would have an option to hold the Units either in physical form or in demat form.  

 

Can units under the Plans be held partially in physical and demat form by the Unit holder?

Yes. However, Unit holders must use separate application forms for investing simultaneously in both i.e. physical form and demat form.  

 

Will these units be automatically listed on a stock exchange?

The Units issued in demat form will be listed on the capital market segment of the National Stock Exchange of India Limited (NSE) within 30 days from the closure of NFO. In case a Unit holder wants to hold units in a demat form he will have to give the details of his demat account in the space provided in the application form. It will not be automatically allotted in demat form without the requisite details.  

 

Is it possible to redeem units before maturity of the FMP?

No, the units cannot be redeemed before maturity directly with the Fund. However the units held in demat form can be redeemed (sold) on a continuous basis on NSE.  

 

If an investor is willing to hold on till maturity, Does he needs a demat account?

No. He can hold the units as per the current form. He will get the redemption proceeds at maturity.  

 

Can I switch units out of a FMP before maturity into another scheme?

No. The switch can be done only on the date of maturity.  

 

Can I dematerialize the units after allotment but before the date of maturity?

Yes. The Unit holder will have to fill in a Request Form for Demat, and submit the same alongwith the account statement to your DP. The Unit holder has to ensure that enclosed account statement is defaced by marking "Surrendered for Dematerialisation" on the face of the statement.On verification, the same will be forwarded the Registrar & Transfer Agent ('KARVY') to the CDSL/NSDL for dematerialization.  

 

Is it compulsory to mention the ISIN of the Unit while filling up the DRF (Demat Request Form)?

Yes, the ISIN of the Unit should be mentioned in the DRF, to ensure that the correct Unit is dematerialized. Separate ISIN will be allotted for each Plan/Option of the respective Plan(s). If, however, the investor does not know the ISIN, the same can be obtained from the DP or from CDSL /NSDL website or from the Fund.  

 

Can I rematerialize the units once they have been allotted in demat form?

Yes, if you wish to convert the units in physical form (i.e. account statement), a request has to be made to your DP for rematerialisation in Remat Request Form (RRF), who will forward to the Registrar & Transfer Agent ('KARVY'). Once the rematerialization is complete, an account statement will be sent to the Unit holder.  

 

Can a channel investor apply for the units in demat form?

Yes. The channel will have to provide the demat details in the channel feed at the time the file is sent to the Registrar & Transfer Agent ('KARVY'). The provision for the said codes is already there in the existing transaction feed format.  

 

How can I change the non-financial details for units held in demat form?

The request for any change in non-financial details is required to be informed to your DP. If any request is received from such investors at any of the official points of acceptance at the AMC, the same will be summarily rejected and necessary intimation will be sent to the respective investor.

 

Is it possible for the channel investor to convert his holdings from the physical mode to demat mode?

Yes. The conversion process defined in (6) above for the normal investors will apply to such investors.  

 

Will I get the redemption proceeds if I hold in units in demat form till maturity?

Yes. The Unit holder will get the redemption proceeds directly into their bank account linked to their demat account if he holds the units in demat form till maturity.  

 

If there is no PAN in the demat account, but there is one submitted at the time of application.

The Units cannot be allotted in demat form, in case your demat account is frozen / in activated by the DP on account of non- submission of documents, such as PAN. Therefore, submission of PAN alongwith the application form alone will not be sufficient to process the application for allotting units in demat mode.

 

How will I get my dividend proceeds?

For Unit holders in the physical mode the dividend will be paid in the bank mandate indicated in the folio/application form according to the payout mode opted for. For Unit holders in the demat mode the same will be credited to the bank account linked to their demat account or will receive a dividend warrant depending upon the mode of receipt opted.  

 

What is the importance of record dates to units held in demat form?

In case the Units bought by you are yet to be transferred into your account by your broker before the record date, you will not be entitled to receive corporate benefits such as dividend since your name will not figure in the list of beneficial owners. Hence, you must ensure that units bought by you are transferred into your account before the record date announced by the Fund.

 

Is STT applicable for the units, which will be listed?

No. Though the units will be listed on the stock exchange STT is applicable to only equity shares and equity oriented funds. On debt securities there is no STT.  

 

What if I close my existing demat account and open a new demat account, what will happen to my FMP units?

The unit holder will have to fill out a transfer instruction for delivery (TIFD), which he will have to submit to the DP where he will have a new account.  

 

Do dematerialized units have distinctive or certificate numbers?

No. In demat all units are fungible, which means that any unit of an ISIN is similar to any other unit of that ISIN.  

 

How will I get my statement of account?

In the physical mode the Unit holder can receive the account statement on request. In the demat mode the Units will reflect in the statement of holdings issued by the DP. The Unit holder can approach his DP for a statement of holdings over and above what he will receive periodically.  

 

How do I sell the units which have been allotted to me in demat form?

The Units, which are in demat form can be sold through any SEBI registered stock broker at NSE. The investor will have to approach the stockbroker and follow the procedure, which is ordinarily done to sell securities like equity shares.  

 

Does the order of holding and bank account and other details in the demat account have to be the same?

Yes. The order of holding and bank account and other details in the demat account have to be the same as given in the application form.

  

Does the mode of holding in the application form have to be the same as that in the demat account?

Yes. In case a Unit holder has opted to hold Units in the demat mode, the mode of holding mentioned in the application form should be the same as that existing in his demat account. In case of any mismatch the application will be rejected.  

 

Does the nominee mentioned in the application form have to be the same as that in the demat account?

Yes. The nomination should be the same as given in the demat account. In case the nomination details provided by the Unit holder in the application form vary, the nomination details as per his demat account will prevail.  

 

If I apply for the units during the NFO period through a switch transactions can I get the units in demat form?

Yes. To enable the same the Unit holder will have to provide the demat account details. He can attach the application form with the transaction slip. The DP details can be mentioned in the relevant space provided in the application form.  

 

What happens in case of death of the unit holder?

In case the units are held in physical form the transmission policy in force for Canara Robeco Mutual Fund will be applicable. In case the units are held in demat form the Unit holder will have to comply with the guidelines formulated for transmission by the respective DP's.  

 

What will happen in case any application for switch-in results in units being allotted in decimal places?

The applications for subscriptions/ switch-in of Units should be made in multiples of Rs 10/-. However, switch-in requests which results in allotment of units in decimal places (fractional) will be refunded to the Unit holders.

 

How long does it take to dematerialize or rematerialize the units?

It will normally take 15 days to process a valid dematerialization request from the date of receipt of such request and 30 days to process a valid rematerialization request from date of receipt of the said request.

Transaction Charges for Investments through Distributors

What is the amount of transaction charges to be paid by me?

The amount of transaction charges depends on the amount of investment, type of investor (existing / new) and whether the distributor, if any, has opted for receiving transaction charges.
a) If you are an existing investor in any Mutual Fund, you will be charged 100 as transaction charge per purchase transaction / SIP registration of 10,000 or above. No transaction charge is applied on purchase transactions below 10,000 and on switches / redemptions / STP registrations.
b) If you are a new investor in Mutual Funds, you will be charged 150 as transaction charge per purchase transaction / SIP registration of 10,000 and above.
c) In case of SIP registrations, the transaction charge shall be applicable only if the total commitment amount through SIP is 10,000 or above. The transaction charges will be recovered in 4 installments.
d) No charges will be applied to your transaction if you do not use a distributor for that transaction or if your distributor has opted-out of receiving transaction charges.  

 

What is the transaction charge for direct investments?

Transaction charges are not applicable for direct investments.  

 

Is it compulsory that I pay transaction charges?

If the purchase transaction / SIP registration of 10,000 and above is processed through a distributor who has opted to receive transaction charges, transaction charges will have to be paid by you.   

 

I wish to switch my existing investment into a new scheme. Will transaction charges be payable by me?

No. Transaction charges are applicable only for purchase transaction / SIP registration. Hence, you don't have to pay transaction charges for switches. 

 

Will transaction charges be applicable for all schemes?

Yes. Transaction charges are payable on purchase transaction / SIP registration in all categories of schemes including liquid schemes.  

 

I wish to redeem my existing investments. Do I have to pay transaction charges?

No. Transaction charges are payable only on purchase transaction / SIP registration.  

 

I have invested earlier in Canara Robeco Mutual Fund. Do I still have to pay transaction charges?

Yes. If the purchase transaction / SIP registration of 10,000 and above is processed through a distributor and the distributor has opted to receive transaction charges, transaction charges will have to be paid by you even though you are an existing investor.  

 

I have invested earlier in Canara Robeco Mutual Fund as a guardian of my children and have submitted my PAN for that investment. How much transaction charges will I have to pay?

The transaction charge will be Rs 100 if the amount of purchase transaction / SIP registration is 10,000 or above.   

 

I have invested earlier in Canara Robeco Mutual Fund as the first holder and have submitted my PAN for that investment. Now, I will be investing as the second holder. Will I be charged 100?

 If the first holder has invested through a distributor who has opted to receive transaction charges, 150 will be applied as transaction charge if the first holder is new investor and 100 if he / she is an existing investor.   

 

I pay consultation fees to my advisor. Will transaction charges still be applied to me?

 If your distributor has opted to receive transaction charges, these charges will be applicable to you.  

 

My distributor has opted to receive transaction charges. Am I required to pay him advisory charges additionally?

Advisory charges are decided by you in consultation with your distributor. Hence, you may liaise with your distributor in this regard.

 

I am a new investor and wish to invest in 3 mutual funds on the same day. Will I be considered a new investor in all 3 mutual funds?

Yes. You will be considered a new investor in all 3 mutual funds.

 

I had invested 5 years back and had not provided my PAN. Will I be considered as a new investor and charged 150? Can I inform you about my earlier investment and be charged only 100?

If you have an existing folio with us and you invest in the existing folio, you will be charged 100. In case you do not mention your existing folio in the application form while investing, you will be charged Rs. 150 for the first investment and 100 for subsequent investments since the PAN is registered after the first purchase.  

 

I am a new investor and wish to invest vide SIP. When will the transaction charges be applied?

If an SIP is submitted without the first cheque, transaction charges will be applied in 4 instalments beginning from the first SIP installment. For SIPs submitted with the first cheque (i.e. any day SIP) the transaction charges will be applied in 4 instalments beginning from the first installment after SIP registration.  

 

How will be 10,000 criterion be computed for SIPs?

The SIP value will be computed as amount per installment (x) number of installments.  

 

Will transaction charges be applied for SIPs registered prior to 01-Nov-11?

Transaction charges will not be applicable for registrations prior to 01-Nov-11.  

I will be investing in Canara Robeco Top 200 Fund with SIP Top - Up facility. How will be 10,000 criterion be computed?

In case of SIP with Top-up facility, the additional amount (i.e. top-up amount) will be considered for applying the transaction charges.   

 

I intend to register for STP. Will I be charged Rs. 100?

No. Transaction charges are applicable only for purchase transaction / SIP registration is 10,000 or above.  

 

I will be investing 30,000 in Canara Robeco TaxSaver. Will I get the tax benefit for 30,000 after deduction of transaction charges?

Yes. Tax benefits, if applicable, will be available on the subscription amount i.e. 30,000.  

 

I am a new investor and will be investing 10,000 in Canara Robeco Equity Fund. Thus, after deducting 150 as the transaction charges, the balance of 9,850 will be invested. However, the application amount is required to be in multiples of 100. How will this be resolved?

The minimum / multiples criterion for purchases will be validated against the gross investment amount i.e. 10,000 in this case.  

 

I am an NRI. What will be the transaction charges applicable to my investment?

Transaction charges will be the same for all categories of investors.

Holding units in Demat mode

What are the provisions of SEBI circular No. Cir/ IMD/ DF/9/ 2011 dated May 19, 2011?

With a view to popularize the option of holding mutual fund units in demat form, SEBI has mandated mutual funds with effect from October 1, 2011 to:  

  • Provide an option to the investors to receive allotment of mutual fund units in their demat account while subscribing for units in any scheme.
  • Provide an option to the investors to mention demat account details in the application form, in case they desire to hold units in demat form.
  • Quote the ISIN along with the name of the respective scheme in all Statements of Account / Common Account Statements (CAS) issued to the investors.
     

If I opt to receive units in my demat account, when will I receive the account statement?
Units will be allotted to you depending on the time of receipt of your transaction. A transaction confirmation specifying the units allotted will be sent by way of email and/or SMS within 5 Business Days after the receipt of the transaction. This transaction confirmation will be sent to the investors whose email address and/or mobile number is available with the mutual fund. The account statement reflecting the units will be sent to you by your Depository Participant (DP).  

How do I opt for receiving units in my demat account?
For receiving units in your demat account, you have to submit a duly filled "Application for Allotment of Units in Dematerialized Mode" along with the application form / transaction slip.  

 

If I purchase units and wish to receive units in my demat account, when will I be able to view the units in my demat account?
You will be able to view the units in your demat account within 10 days from the date of submission of the transaction.  

 

Will the SIP units be available in my demat account?
As of now, this facility is restricted to purchases other than systematic transactions including SIPs. You can opt to receive SIP units in your demat account for new SIPs registered after January 1, 2012.  

 

I have a folio with live investments in 2 schemes of Canara Robeco Mutual Fund. I wish to view the units of 1 of the schemes in my demat account. Can that be done?
Yes. After dematerialisation of the units in 1 scheme, the account statement for the folio will not contain the details about the units in the dematerialized form.

 

I wish to redeem the units which are in my demat account. How can I do that?
For redeeming units from your demat account, you have to approach your Depository Participant (DP) / broker for stock exchange transactions for redeeming them. You will not be able to redeem these units from any office of Canara Robeco Mutual Fund / KARVY.  

 

Can I switch units from Canara Robeco Equity Fund which are in my demat account to any other scheme?
Yes, you can switch units held in your demat into another scheme.

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