What is commencement/effective date of CKYC
CKYC is effective from 1 February 2017
What is CKYC?
CKYC refers to Centralized KYC (Know Your Customer). The main objective is to have a platform which facilitates investors to complete their KYC only once before interacting with various entities across the financial services sector. Once the CKYC is complete for an Investor, he / she is allotted a 14 digit unique KIN (KYC Identification Number) which needs to be quoted by the investor while doing any transaction.
Who is acting as CKYCR?
Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) is acting as Central KYC Registry (CKYCR). CERSAI is a central online security interest registry of India authorized by the 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. CERSAI will act as central repository of KYC records of investors in the financial services sector with uniform KYC norms.
Who needs to comply with the CKYC procedure?
Currently CKYC is applicable to Individuals only (Resident Individuals & Non Resident Indian). Any individual customer who has never done KYC with KYC Registration Agency (KRA) and whose KYC is not registered in the KRA as well as CKYC system is required to complete the CKYC process.
Existing investors who are registered or verified in the KRA system can continue making investments without any additional documentation. However, for any modification to their existing records, they need to fill up the CKYC form.
How can I apply for CKYC?
For completing the CKYC process, the customer is required to visit the nearest Point of Service /Point of Acceptance and furnish the duly filled in CKYC form, all the required documents (duly attested) as prescribed under CKYC.
Further, if any prospective investor uses the old KYC form, which does not have all information needed for registration with CKYC, such customer should either be requested to provide additional/missing information using a supplementary CKYC form or fill the new CKYC form.
How CKYC is different from existing KYC in terms of information?
CKYC requires additional information (for e.g. – investor’s maiden name, mother’s name, FATCA information, etc.) to be submitted to CERSAI for completion of the CKYC formalities of an investor. Date of Birth is mandatory information under CKYC. All required documentation including proof of identity and proof of address are mentioned in the CKYC form.
Whether PAN and In Person Verification (IPV) is required for CKYC in Mutual Fund?
How will I be intimated my CKYC KIN?
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/email address of the investor as soon as the KIN is generated at their end. Since CERSAI will not be sending any physical intimation, applicants should ideally provide their mobile number and/or email ID in the CKYC application form.
What is KYC process to be followed for non-individual customers?
For non-Individuals, the existing KYC template shall continue to be used and uploaded into KRAs, as governed by prevailing SEBI and AMFI guidelines.
What is De-materialization or conversion of Mutual fund Units into De-mat mode?
In case investors are holding Mutual Fund Units in the physical form, (i.e. represented by a Statement of Account) they can convert this units into dematerialised form in their demat account with any Depository Participant (DP) of NSDL or CDSL. DP has enabled holding of mutual fund units [represented by Statement of Account] in dematerialised form. Investor can use their existing demat accounts for converting mutual fund units in dematerialised form.
Please note that once mutual funds are in demat form, investors can sell/redeem units (other than listed scheme units) either through stockbroker through the Exchange platform (BSE Star & NSE MFSS) or through their Depository Participant.
Can Non Resident Indians (NRIs) convert their Mutual Fund Units into dematerialized form through their DPs?
Yes, provided the demat account is opened under the NRI category.
What will happen if there is a discrepancy in the details provided to the AMC and that provided to my demat service providers?
If the key details mentioned in the application are not matching with the Depository data, then Units will be issued in Physical mode and Statement of Account will be issued to the Unit holder.
How do I redeem the units which are in my demat account?
Redemption request can be placed through Depository Participants & Exchange platforms like NSE MFSS/ BSE STAR platform which are available for trading of Mutual Fund Units.
In case the Investor desires to redeem units through the mutual fund, the Dematerialised units have to be converted into physical form (represented by statement of account issued by the AMC) by submitting an application for Re-materialization of units to the Depository Participant. In such case application for redemption would be considered on the date when physical redemption slip is provided duly signed to the AMC.
When will the units reflect in my demat account?
In case the initial purchase is done such that you have opted to receive units in demat mode, we will validate the demat account details provided by you with the respective depository participant. Upon successful validation, the units will be initiated for allotment in demat mode on a T+2 business days. basis after allotment of units. For New Fund Offer units will credited within 4 business days from the date of allotment
In case of allotment of units in dematerialized mode under Systematic Investment Plan (SIP), the units will be credited to your demat account on a T+2 business day basis after the allotment of units.
If I have opted for ‘demat mode’, will I be able to transact through my demat account?
Yes, you will be able to transact through your DP in your demat account.
What is the procedure to convert my physical mutual fund units into demat form?
a. Obtain and sign DRF: The first step, is to ask your Depository Participant for a ‘Dematerialization Request Form’ (DRF) for conversion of mutual funds units held in physical form into demat form. Once you have obtained it, kindly fill the DRF and sign it.
b. Submitting Documents and Acknowledgement: Kindly submit the duly filled and signed DRF alongwith Account Statement issued by us to the Depository Participant. Acknowledgement will be given by the Depository Participant for the document acceptance (subject to verification).
c. Processing: The Depository Participant (DP) will process the application for conversion of physical units into electronic form. For this, the DP would send the request form and Statement of Account to the Asset Management Company (AMC) / Registrar and Transfer Agent (RTA) for verification
d.Confirmation: The AMC / RTA will, after due verification, confirm the conversion request sent by your DP and credit the mutual fund units in your demat account.
What is the procedure to convert my mutual fund units from demat mode to physical form?
You are requested to check with your Depository Participants (DPs) for the Rematerialization Request Form to convert mutual funds units held in demat mode to physical form.
Can I transfer only partial units of my schemes to demat to physical or vice- versa?
No, Partial dematerialization or rematerialisation of units in the same scheme is not possible.
What documents needs to be submitted by investors (other than resident individual) to buy units from the mutual fund?
Investors need to submit following documents along with an Application Form for first purchase. All documents should be orginal/true copies attested by the director/trustee/company secretary/authorized signatory (where applicable).
Below is the list of documents to be submitted:
Investments through POA;
Resolution/Authorization to invest
List of Authorized Signatories with Specimen Signature(s)
Memorandum & Articles of Association
Overseas Auditor's Certificate
Notarized Power of Attorney
Foreign Inward Remittance Certificate in case of payment is made by DD from NRE/FCNR A/c where applicable
Know Your customer (KYC-KRA)
(*) For FIIs copy of the SEBI registration certificate should be provided. In case the Corporate or Non Individual investors, all the necessary documents are to be submitted alongwith the application.
What are the documents required for investment in the name of Minor
For investments in the name of a minor, the below mentioned documents needs to be submitted:
What is the new definition of NPO (Non-Profit Organization)?
As per Rule (2), sub-rule (1) Clause (cf) currently exists - "non-profit organization" means any entity or organization that is registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860) or any similar State legislation or a company registered under section 8 of the Companies Act, 2013 (18 of 2013).
As per the new amendment, the above definition has been modified as “Non-profit organization” means any entity or organization, constituted for religious or charitable purposes referred to in clause (15) of section 2 of the Income-tax Act, 1961 (43 of 1961), that is registered as a trust or a society under the Societies Registration Act, 1860 (21 of 1860) or any similar State legislation or a Company registered under the section 8 of the Companies Act, 2013 (18 of 2013);”
Registration of NPOs in DARPAN portal of NITI Aayog?
All NPOs should register themselves in DARPAN portal of NITI Aayog https://ngodarpan.gov.in/. Currently the facility is available only for NPOs for self-registration and hence eligible NPOs shall register themselves in the portal and provide the registration number. In case of any non-registration, MFs/RTAs may register if such provision is enabled. Non-registration and submission of NPO registration number to MF/RTA might result in transaction restrictions.
What is the impact of the above changes?
Currently no specific declaration is provided by the concerned NPOs as NPO. Based on specified parameters, reporting is made to the respective authorities as per the requirements. To ensure reporting on NPOs and their information, MFs/RTAs need a specific declaration from the applicable NPOs along with the confirmation of their registration with DARPAN portal and its registration details. Currently portal has the option of self-registration and hence NPOs are mandated to register themselves in the portal. All applicable Trusts/Societies/Section 25/Section 8 companies should declare themselves suitably. Other Trusts/Societies who do not fall under the new NPO definition should confirm that they are not falling under the referred NPO definition.
What are the changes to UBO (Ultimate Beneficiary Owner) requirements?
|Clause/Rule/Sub- Rule||Existing requirements||New requirements||Changes|
|Rule(9)(3)(a)(1)||Controlling ownership interest” means ownership of or entitlement to more than twenty-five (25) per cent of shares or capital or profits of the company.||Controlling ownership interest” means ownership of or entitlement to more than ten (10) per cent of shares or capital or profits of the company.||UBO definition for Corporates– reduced from 25% of control to 10%.|
|Rule(9)(3)(e)||(e) where the client is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with fifteen (15) per cent 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;||(e) where the client is a trust, the identification of beneficial owner(s) shall include identification of the author of the trust, the trustee, the beneficiaries with ten (10) per cent 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;||UBO definition for Trust – reduced from 15% ofcontrol to 10%.|
What actions are required from the non-individual investors for revised UBO requirements?
All Companies or Trusts/Societies must submit the fresh UBO declaration as per the format shared by RTAs to confirm that new UBO information is refreshed and updated in MF/RTA database accordingly.
Is the revised UBO declaration required even if there is no change in UBO information?
Yes. New UBO declaration form should be submitted fresh by all Companies/Trusts/Societies even if there is no change in UBO details as some of the values are made mandatory for various other reporting and due diligence requirements. For new folio creation, new UBO declaration is mandatory. For the existing investors, they may provide the updated new UBO declaration, but transaction restriction might not happen.
Whether Companies / Trusts / Societies should submit both revised UBO and NPO declaration in the prescribed format?
All Companies or Trusts/Societies must submit the fresh UBO declaration as per the format shared by RTAs to confirm that new UBO information is refreshed and updated in MF/RTA database accordingly. Trusts/Societies/Section 8 companies (under Companies Act, 2013) should additionally submit the new NPO declaration duly filled and signed along with the updated Authorized Signatory List (ASL) in case of any changes.
Further, when there is any change in controlling interest or NPO status happens or information already provided, fresh UBO / NPO declaration should be submitted suitably to MFs/RTAs.
What types of transaction are impacted and what is the effective date?
Are these declaration(s) required at Fund level?
No, these declarations are required at MF RTA level separately.
Apart from UBO controlling interest, are there any other changes in UBO requirements?
Yes. The following requirements / validation are mandatory.
If no UBO falling above the applicable threshold %, what information needs to be provided?
If no UBO can be identified based on the applicable threshold like above 10%, details of Senior Managing Official (SMO) information should be provided as UBO.
If UBO/SMO is Foreign National and PAN is not applicable/available for the person. falling above the applicable threshold %, what information needs to be provided?
Wherever PAN is not applicable for UBO or SMO, TIN should be provided mandatorily.
Whether UBO or SMO information should be provided for Listed Company?
UBO or SMO information is not applicable for Listed Company or its associate / subsidiary company. However, they need to declare suitably in UBO declaration form.
What is the TAT for UBO / NPO declaration?
TAT for UBO/NPO declaration registration is T+3 business days.
We have submitted UBO / NPO declaration to MF/RTA on T day. Can I open a new folio in another fund (serviced by the same RTA) on the next day?
Unless UBO/NPO is registered, no folio can be opened in another fund (serviced by the same RTA) unless such UBO/NPO declaration is submitted for another Fund or investor must wait till registration is completed in any one of the MF/RTA.
Is UBO/SMO PAN KYC status On-Hold, what will be the impact?
Transactions will not be allowed unless UBO/SMO PAN is KYC Complied. If KYC status changes to KYC On-Hold for any reasons thereof, further transactions might be restricted.
Is UBO/SMO PAN under SEBI Debarment or PAN being under lock based on the notice from Law Enforcement Agency(ies), what will be the impact?
Transactions will not be allowed if UBO/SMO PAN is under SEBI debarment or under Lock based on any notices from Law Enforcement Agency(ies).
Assuming there is an Ultimate Beneficiary whose PAN is debarred for some issue in Company A who is also one of the Ultimate beneficiaries in one another entity say Company B. Does it mean that unless the debarment is lifted for the Ultimate beneficiary’s PAN Company B will not be able to transact?
Yes, transactions will not be allowed from any of the Corporate, if UBO/SMO PAN is under SEBI debarment or under Lock based on any notices from Law Enforcement Agency(ies).
Can an investor invest in mutual funds without a pan card?
No. As per SEBI circular MRD/DoP/Cir-05/2007 dated April 27, 2007 and MRD/DoP/Cir-08/2007 dated June 25, 2007, Permanent Account Number (PAN) is the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction, effective July 2, 2007. Hence PAN is mandatory accept.
Investors residing in the state of Sikkim are exempt from the mandatory requirement of PAN proof submission; however sufficient documentary evidence shall have to be submitted for verifying that they are residents of the State of Sikkim. Applications without the aforesaid details are liable to be rejected without any reference to the investors. In line with SEBI letter no. OW/16541/2012 dated July 24, 2012, addressed to AMFI, Investments in the mutual fund schemes [including investments through Systematic Investment Plans (SIP)] up to Rs. 50,000/per investor per year shall be exempted from the requirement of PAN. However, requirements of Know Your Customer (KYC) shall be mandatory.
Accordingly, investors seeking the above exemption for PAN still need to submit the KYC Acknowledgement, irrespective of the amount of investment. This exemption will be available only to Micro investment made by the individuals being Indian citizens (including NRIs, Joint holders, minors acting through guardian and sole proprietary firms). PIOs, HUFs, QFIs and other categories of investors will not be eligible for this exemption.
Can an investor invest in mutual funds without kyc?
No. With effect from January 1, 2011, KYC is mandatory for all classes of investors irrespective of the investment amount.
Does the investor need to submit pan copy each time he/she invests with helios mutual fund?
An existing investor with Helios Mutual Fund whose PAN is already updated in the folio and wishes to invest again, need not submit the PAN copy again.
Will the investor’s purchase transaction get rejected if his/her kyc gets rejected by the kra (key registered agency)?
No, the existing purchase transaction will not get rejected; however, the folio will be frozen and no further subscriptions will be permitted until the KYC is completed
Does a joint holder need to be kyc compliant while investing in helios mutual fund?
Yes, all joint holders need to be mandatorily KYC compliant
Does a guardian acting on behalf of the minor need to be kyc compliant in helios mutual fund?
Yes, the guardian of the minor investor needs to be mandatorily KYC compliant
What are the mandatory fields which an investor needs to fill in the application form?
The investor needs to mandatorily fill the details stated below in the application form:
If the investor has made a joint applicant but has not specified the mode of holding, what will be the default mode of holding?
The default mode of holding will be joint.
Can an investment done on behalf of a minor investor be jointly held by other investors?
No, if the investment is done on behalf of the minor, then the minor will be the sole and first holder without any joint holders in the folio.
Who can act as the guardian of the minor in the folio?
The guardian of a minor should either be a natural guardian (i.e., father or mother) or a court appointed legal guardian.
Which documents can be accepted by mutual fund / registrar and transfer agent as proof of the minor/ relationship of the minor with his/her guardian?
The following documents can be accepted for this purpose:
In which scenarios will a change of guardian be allowed?
A change of guardian will be allowed in the scenarios stated below:
Why is it necessary for an investor to register his/her email id and mobile number in the folio?
An investor should register his/her email id and mobile number in the folio to get alerts from Helios Mutual Fund. Further, it will help Helios Mutual Fund to keep the investors informed of various matters.
Which category of investors can apply with joint applicants?
Only resident individuals and Non-Resident Individuals can apply with joint applicants.
Can an investor add/remove joint holders in an existing folio?
No, the investor cannot add/remove joint holders in an existing folio out of his/her own will
Can a minor act as a joint applicant?
Can an investor invest in helios mutual fund by making the payment using his/her credit card?
No, the investor cannot invest by using his/her credit card
Is date of birth of the minor mandatory at the time of opening the account/folio?
Yes, it is mandatory.
What will happen if the day on which the investor wishes to receive the redemption payout is a non working business day?
If the day on which the investor wishes to receive the redemption payout is a non-working business day, then the payout will be done on the next business day.
Which category of mutual fund should I invest in??
There are various categories of schemes like Equity, Debt, hybrid etc. Basis the investment need and risk profile of the individual, scheme from relevant category may be chosen. You may consult your financial advisor in this regard. Investors who have high risk appetite and want to invest for long- term , may chose schemes of Equity category.
How will I know that the transaction has been successfully placed?
You will receive a transaction acceptance email and SMS after the transaction has been successfully processed in our records. If not received within 2 working days, please email us at firstname.lastname@example.org
I have completed the transaction. When will I receive my statement of accounts?
In case of NFO, the statement is sent within 5 days from the date of allotment. While in case of normal transaction statement is triggered on email at the time of transaction processing. Wherever investor has opted for physical account statement the same is sent on T+2 days for fresh purchase transactions. You can also download the statement of account online if you have registered on our website www.heliosmf.in.
How can I invest?
Investing in mutual funds is fairly simple. Below are the four main ways of investing.
What should I be aware of at the time of investing?
What is a mutual fund’s NAV and how is it calculated?
When you invest in a mutual fund, you will receive units at the current NAV (NAV stands for Net Asset Value).
NAV is the price of a single unit of the fund. An investor can buy or sell units at this price. NAV of a fund changes every day as a result of changes in the market price of the securities held by the fund.
NAVs are calculated by taking the closing value of all securities held by a fund. From this value, its liabilities and expenses are reduced before declaring the NAV to the public. The formula is as under: NAV = (Value of Assets-Value of Liabilities)/Number of units outstanding
The NAV for mutual fund products is calculated at the end of each day for every fund. It is published on the website of every fund house and that of the Association of Mutual Funds in India (AMFI).
What do I get as proof of my holdings?
You will receive a Statement of Account (SOA) for your investment which will contain the details of your investment along with the address and contact details.
What is the frequency for dispatching the account statement?
Consolidated Account Statement (CAS)/Account statement is dispatched monthly, on or before 10 calendar days of the following month for folios which have been transacted in the previous month.
In case valid email id is available, the account statement for the financial transactions will be emailed to the investor within T+5 business days (T being date of Transaction accepted before cut-off time)
What if there are no transactions in a folio for a long period?
CAS for folios that do not have a financial transaction in a half-year period ending September or March, will be sent in the month following such half-year period, with details of the holding at the end of six months.
What is Consolidated Account Statement (CAS)?
Consolidated Account Statement or CAS is an account statement where the Registrar and Transfer agents identify common investors across fund houses by their permanent account number. The following parameter will be considered -
What are the different modes through which an investor can request a Statement of Account?
Can investors appoint nominees for their investments in mutual fund units?
Yes. Nominations may be made by individuals applying for or holding units on their own behalf, either singly or jointly. Those who cannot nominate are - non-individuals including societies, trusts, corporate bodies, partnership firms, Kartas of Hindu undivided families, or holders of power of attorney. In Case the investor does not wish to nominate, he / she will have to specifically state that they do not wish to nominate.
Can I switch between funds?
You may switch all or part of your investments from one scheme to another. To process a switch request, you need to provide clear instructions by completing a form and submitting it on any business day at an investor service centre, or the office of registrar or transfer agent. An account statement reflecting the new holdings will be sent to investor’s registered email.
Who are the Registrar and Transfer Agent?
CAMS are the Registrar and Transfer agent for Helios MF and they are responsible for keeping the records and processing the transaction of the investors.
What are the inherent risks in mutual funds?
Investors are requested to kindly go through the Scheme Information Documents of the respective schemes for details on various types of risks
What is a folio number?
Folio number is like a bank account number that reflects your holdings in schemes of the fund house. There is no restriction on the number of folios that one can have with a fund house. However, it is advisable to have a minimal number of folios, as it eases the task of tracking your investments.
What does Transaction charges imply?
In accordance with the SEBI Circular No. IMD/DF/13/2011 dated August 22, 2011, effective from November 1, 2011, the Fund shall deduct a Transaction Charge on purchase/subscription of Rs.10,000/- and above, wherein such purchase/ subscription is through distributors/agents who have "opted in" (Distributor has an option of “Opt In/Out” at a product category level ) to receive the transaction charge as under:
What is "ASBA"?
ASBA stands for "Application Supported by Blocked Amount". ASBA is an application containing an authorization to the investor’s bank to block the application money when he/she subscribes for units of a new scheme during the New Fund Offering (NFO). If an investor applies through ASBA, his/her application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized.
What are the pre-requisites for an investor to apply through ASBA facility?
To apply through the ASBA facility, the investor must fulfil the following conditions:
What are the advantages an investor has by applying through asba vis-à-vis applying through an application with a cheque?
The investor has the following advantages by applying through ASBA:
Is it mandatory for investors eligible for ASBA, to apply through ASBA only?
No, it is not mandatory. An investor, who is eligible for ASBA, has the option of applying for an NFO through ASBA or through any existing facility such as issuing a cheque or making the payment electronically when investing online.
How can an investor subscribe to units of a scheme of helios mutual fund through ASBA?
The investor needs to submit the completed ASBA application form to a Self-Certified Syndicate Bank (SCSB) with whom the investor holds a bank account through one of the following modes-
Where can the investor get the list of Self-Certified Syndicate Banks (SCSB) and their designated branches?
The list of Self-Certified Syndicate Banks (SCSBs) and their designed branches i.e. branches where ASBA application form can be submitted, is available on the websites of BSE (www.bseindia.com) and NSE (www.nseindia.com) and on the website of SEBI (www.sebi.gov.in)
What is a Self-Certified Syndicate Banks (SCSB)?
SCSB is a bank which is recognized as a bank capable of providing ASBA services to its customers. A list of such banks is available on the website of SEBI, NSE and BSE
Can the investor submit the ASBA form in any SCSB bank?
No, the investor needs to submit his/her ASBA form to the SCSB with which the investor has a bank account.
Is the investor required to submit the ASBA form only physically?
No, the investor can either fill up the physical ASBA form available with the SCSB and submit the same to the SCSB or apply electronically through the internet banking facility if provided by the SCSB
Can the investor invest in SIP during the NFO through ASBA?
No, the investor can only make lump sum investments during the NFO through ASBA.
Can the investor submit the ASBA application form at any of the service centres of Helios Mutual Fund also?
No, the investor can submit the completed ASBA application form only to a Self Certified Syndicate Bank (SCSB) with which he/she holds an account.
Can an investor withdraw/modify his investment in the NFO through ASBA?
Yes; however, the investor is allowed to withdraw or modify only during the NFO period
Will the investor’s bank account be blocked or only the amount to the extent of application money is blocked?
The investor’s bank account will not be blocked. What is blocked is only the amount equal to the application money authorized in the ASBA. The balance money, if any, in the account can be used by the investor for other purposes.
If the investor withdraws the application made through ASBA, will the bank account be unblocked immediately?
If the withdrawal is made during the NFO period, the SCSB deletes the application transaction and unblocks the application money in the bank account. If the withdrawal is made after the NFO closure date, the SCSB will unblock the application money only after getting appropriate instructions from the Registrar, which is after the finalization of basis of allotment in the issue.
Can the investor submit asba to a broker as is being done in the present process of applying through cheque?
The investor is required to submit ASBA to the SCSBs only.
Will the investor get the acknowledgement of receipt for applications submitted through ASBA from the SCSB?
Yes, the SCSB will give a counterfoil as an acknowledgement at the time of submission of ASBA. The SCSB will also give the investor the order number generated at the time of uploading the application details, if the investor asks for this
Will there be any different treatment in allotment for ASBA and NON-ASBA forms?
No, ASBA forms will be treated in the same way as non-ASBA forms while finalizing the basis of allotment.
In case of any complaints regarding ASBA application, whom can the investor approach?
In case of any complaints the investor can approach the SCSB where the application form was submitted or the Registrars to the issue.
What is realization-based NAV? Is this circular applicable for lump sum purchase and switch-in?
Realization based NAV means that the allotment of units will happen on realization and on credit of funds before the applicable cut off times. This has been brought into effect vide SEBI Circulars SEBI/HO/IMD/DF2/Cir/P/2020/175 dated September 17, 2020 and circular SEBI/HO/IMD/DF2/CIR/P/2020/253 dated December 31, 2020
Realization based NAV wef February 01, 2021, will be applicable to all type of purchase and switch in transactions which includes:
Will there be any change in applicability for Overnight Fund?
The existing provision of NAV applicability for overnight funds and cut-off timings for all other scheme types remains unchanged.
Is there a change in cut-off timing for Equity and Debt Schemes transactions?
There is no change in the cut-off timings of Equity and Debt Schemes. However, as stated earlier, unit allotment will be based on credit realization.
Will this cover Fund of Fund (FOF) schemes as well?
Yes. The SEBI Circulars circular will also include FOF schemes.
Will it impact online/exchange/channel/MFU mode of transactions also?
Irrespective of mode of transaction the allotment of units will be based on credit realization.
What will be the process for NFO Purchase and NFO Switches?
In case of NFO subscriptions, allotment date will be considered irrespective of credit date/ NFO application submitted on or before NFO closure date.
In case of switches into NFO schemes from the existing schemes, Switch-Out will be processed on the existing schemes based on time-stamped date and time, Switch-In units will be allotted only on NFO Allotment date.
How the NAV will be allotted where funds are transferred first, and application is submitted thereafter?
If the funds are transferred first and purchase application is submitted at a later date the time-stamped date and time will be considered for NAV applicability. In order to be considered for allotment, the funds and the application form should have been received before the applicable cut off time.
If investor’s account is debited on X date before cut-off whether investor will get that X days NAV for debt & equity funds?
The NAV allotment will be based on receipt of funds in Scheme/AMC/Mutual fund account.
What will be the impact on units created through Dividend Reinvestment?
Since the funds are available in the same scheme for reinvestment of dividend, the provisions of SEBI circular do not apply.
What will be the applicable cut off time for purchase transaction of liquid, Money Market & scheme other than liquid schemes?
Please find grid with the details of cut off time with effect from November 9, 2020.
All schemes Other than Liquid and Overnight Funds
Liquid and Overnight Funds
Please find grid with the details of NAV Applicability with effect from February 01, 2021.
|Debt & Equity (Non- Liquid)||Any amount||Before & after applicable cut-off time||NAV applicability based on funds available for AMC utilization date and time irrespective of investment amount. (Latest Timestamp or funds available for AMC utilization whichever is later is applicable).|
|Liquid & Overnight schemes||Any amount||Before applicable cut-off time||One day prior to date of realization and funds available in the scheme for AMC utilization before the cut off time.|
|For transactions received after the applicable cut-off time |
Friday & before the applicable cut-off time on Monday shall be provided with Sunday holiday NAV(Latest Timestamp or funds available for AMC utilization whichever is later is applicable). This logic is applicable for all transactions where transaction date is followed by non-business day.
How to add/cancel/modify nominee ?
Nomination Registration The SEBI (Mutual Fund) Regulations, 1996, notifies that the mutual fund shall provide for nomination facility to the unit holders to nominate a person in whose favour the units shall be transmitted in the event of death of the unit holder. In accordance, with the same, the AMC provides for the nomination facility as permitted under the Regulations.
What is the process of changing address in the folio ?
Change of Address:
KYC Complied Folios/Investors :
What is the process of changing bank details?
In case of change of bank request, the investors shall be required to submit the below stated supporting documents to effect the change:
Documents to be submitted for new bank account Unit holders can provide originals of any of the 4 documents listed below; alternatively, originals should be brought for verification and photocopies can be submitted. If the unit holder gets photocopies of the documents attested by the bank, originals need not be submitted.
What is the procedure for updation of change in Status from Minor to Major?
The registered Minor investor, on attaining major status (18 years and above), is required submit following set of documents to change the status in folio from Minor to Major.
What are the requirement /parameter for consolidating two or more folios?
Consolidation of two or more folios can be done if the below stated parameters are same across all the folios being consolidated.
What is the process for applying to consolidation of folios?
The investor is required to submit a letter duly mentioning all the folio’s numbers to be consolidated in to the Primary Folio. The consolidation request letter needs to be signed by all investors as per the Mode of Holding in the folio’s. The request needs to be submitted at our Official point of Transaction acceptance (OPAT) or CAMS OPAT branch office. (Branch address link to be provided)
Please note that consolidation of two or more folios can be done only if the below stated parameters are same across all the folios being consolidated.
What is the procedure for updating new signature in the records?
The investor is requested to submit a letter for updating new signature in the records. The request needs to be signed by the unit holder(s) with the New Signature along with self attested copy of any one of the document listed below towards proof of identity (self attested)
How do I have my name corrected in the folio?
Documents required for effecting Name change Name change request can be accepted from an investor, in the below mentioned scenario(s)
What’s the process of lien marking/cancellation ?
Lien registration procedure.
Lien registration- Following documents are required
Who is a Non-Resident Indian (NRI)?
A Non-Resident Indian (NRI) means a person resident outside of India, who is an Indian citizen or a person of Indian origin
Who is a Person of India Origin (pio)?
A Person of Indian Origin means a citizen of any country (other than Bangladesh or Pakistan), if:
Who is an Overseas Corporate Body (OCB)?
An Overseas Corporate Body (OCB) means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty percent by NRIs and includes an overseas trust in which not less than sixty percent is held by NRIs, directly or indirectly, but irrevocably.
Who is a Foreign Institutional Investor (FII)?
A Foreign Institutional Investor (FII) means an institution established or incorporated outside India which proposes to make investment in India in securities and which is registered by Securities and Exchange Board of India.
Can NRIs, PIOs, FIIs and OCBs invest in mutual fund schemes in india?
NRIs, FIIs and PIOs can invest in any mutual fund schemes in India under the Portfolio Investment Scheme. However, OCBs are not allowed to invest in mutual fund schemes in India
Do NRIs, PIOs and FIIs require any prior approvals from the Reserve Bank of India to invest in mutual fund schemes?
NRIs and FIIs have been granted general permission by the Reserve Bank of India [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000] for investing in units of the schemes of domestic mutual funds subject to conditions set out in the aforesaid regulations. However, PIOs need to attach a copy of the PIO card with the application forms at the time of investing.
Can NRIs invest in foreign currency?
No. All investments have to be in Indian Rupees. The NRI needs to give us a Rupee cheque from his/her NRE, NRO, NRSR bank account in India. He/she may also send a Rupee cheque from abroad payable in a bank in India.
What is a PIO card? Who issues PIO cards? How to get a PIO card?
PIO cards are issued by the Ministry of External Affairs (CPV Division), Government of India to persons of Indian origin through Indian missions abroad. Specific information on rules, forms, particular offices, missions is available on the website https://passportindia.gov.in
Can an NRI provide overseas bank details in the application form?
How will the redemption proceeds be paid?
Redemption proceeds will be paid by cheque/electronic payout to the investor's bank account. The cheque will be payable to the first unit holder and will include the bank account number. Alternatively the redemption proceeds will be credited directly to the investor's bank account. Redemption proceeds will be payable in Indian Rupees only. The fund will not be liable for any loss due to exchange fluctuations, while converting the Rupee amount into US Dollar or any other currency.
Can NRIs repatriate their earnings on redeeming from mutual fund schemes?
Upon the redemption of the units of any scheme of Helios Mutual Fund by the NRI / PIO, Helios Mutual Fund shall either issue a cheque or will directly credit the redemption amount to the bank account of the NRI / PIO. The NRI / PIO shall be eligible to repatriate their earnings arising therefrom in accordance with the extant provisions of the Foreign Exchange Management Act, 1999.
Can NRIs enroll in the Systematic Investment Plan (SIP)?
Can NRIs gift units of mutual fund schemes to their relatives in India?
Is the indexation benefit available to NRIs?
In case of investment in other than equity fund, the tax on long term capital gains is 10% without indexation where the security is not listed. Where the units are listed, the gains are taxed at 20% after indexation.
However, from April 1, 2023, the rules of taxation for debt mutual funds have changed. According to the new tax rules, indexation benefits will not be available to "specified debt mutual funds" - where equity investments do not exceed 35% of their assets under management.
Can a NRI nominate in the folio?
Can a power of attorney holder invest on behalf of the NRI investor?
When will the TDS get deducted for nri investors?
TDS at the applicable rate will be deducted from the redemption proceeds and the rates would depend upon duration of holding and type of scheme – whether short term or long term, whether equity or other than equity.
What is the proof of the Tax Deduction at Source (TDS)?
A TDS certificate is issued in the name of the investor mentioning the details of the transaction and the tax deducted. The TDS certificate is commonly known as Form16A. Such certificate will be provided only to those investors who have provided PAN (Permanent Account Number provided by the Indian Income Tax Department).
What is the tax liability for income received from your mutual funds?
IDCW (Dividend received from the schemes - equity as well as non-equity will be considered as income of the year and will be taxed as per the applicable tax slab rate.
What is OTM Facility?
OTM, or ‘One Time Mandate’ is a one-time registration process where in the investor authorizes his banker to execute debits to his bank account up to a certain limit based on requests received from Helios Mutual Fund. Helios AMC and/or its registrar (CAMS) shall forward the debit requests to the bank based on the transaction request from the investor for SIP/ Lump Sum purchases. The debits will happen through National Automated Clearing House (NACH).
What are the advantages of OTM facility?
The advantages of OTM are as follows:
How do I register for OTM-NACH facility?
Registration is just a onetime process. All you need is to fill and submit a simple ‘OTM form’ duly signed after reading the “Terms and Conditions” of this facility. Please note that the signatures on the form should be as per your bank records because the form will be sent to your bank branch. Please also attach a copy of a cancelled cheque validating your bank account. You may submit the form at any of the Investor Servicing Centre (HELIOS AMC or CAMS). For details of addresses, please visit our website www.heliosmf.in
How will OTM – NACH debit happen?
OTM debits will happen through National Automated Clearing House (NACH). This system is implemented by the National Payment Corporation of India which aims to consolidate the multiple Electronic Clearing System (ECS) systems running across the country. The NACH system helps in reduction in registration time to just 10-12 days Additionally, this system provides a positive confirmation from investors’ bank about registration acceptance or non-acceptance, unlike ECS (Debit) System.
What is National Payments Corporation of India (NPCI)?
National Payments Corporation of India (NPCI) was set up by Indian Banks Association under a mandate from the Reserve Bank of India in 2008. It is the umbrella organization for all retail payment systems. The core objective is to consolidate and integrate the multiple systems with varying service levels into nation-wide uniform and standard business process for all retail payment systems. The other objective is to facilitate an affordable payment mechanism to benefit the common man across the country and help financial inclusion.
What is NACH?
NPCI has implemented the National Automated Clearing House (NACH), a web based solution for Banks, Financial Institutions, Corporate and Government to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature.
It is a centralised system, launched with an aim to consolidate multiple ECS systems running across the country and provides a framework for the harmonization of standard & practices and removes local barriers/inhibitors. It provides a national footprint and is expected to cover the entire core banking enabled bank branches spread across the geography of the country irrespective of the location of the bank branch. It also supports Financial Inclusion measures initiated by Government, Government Agencies and Banks by providing support to Aadhaar based transactions.
What are the benefits of NACH to investors?
Who can avail for OTM- NACH facility?
Only existing investors having a folio can avail registration of OTM-NACH facility. It can be availed by existing Individual and Non Individual Investors.
How can investor register One Time Mandate?
Investor needs to fill the mandate registration and submit the same at any of the Designated Investor Service Centre. The details to be filled by investor are:
How can investor do lumpsum additional investment upon registering One Time Mandate?
While submitting the additional purchase request investor needs to tick the payment mode as OTM facility (One Time Mandate). Amount for the additional purchase transaction shall be debited from the bank account registered in One Time Mandate. Hence, this facility eliminates the need to submit a cheque at the time of transaction. The amount will be debited from the bank account mentioned on the OTM form automatically as per the instructions given by you.
Is the OTM-NACH mandate registration at a Scheme level or at a Folio level?
The OTM - NACH mandate registration would be at a Folio level.
If an investor has multiple bank accounts registered, should he/she register multiple OTM- NACH mandates?
Investors should sign an OTM - NACH mandate form for the bank account which he or she would want to debit for the purchase of schemes. NACH mandate is an agreement between Investor, his/her Bank and Helios Mutual Fund mandating the Mutual Fund to debit the investor bank account anytime based on investor request.
Does the investor need to have an account with a specific bank only to register for OTM facility?
The OTM facility is not restricted to a particular bank/ branch/ location. As long as a bank is participating in the NACH system, investors can register OTM facility for any of the bank branches. For updated list of banks eligible for NACH Facility please refer to www.npci.org.in/national-automated-clearing-live-members-1
Is there a frequency of debit for OTM NACH mandate registration?
We are offering only one option as frequency - ‘As and When Presented’. This would enable any time debit and allow the investor to perform both Lump-sum and SIP.
NACH offers an investor to select different frequencies.However, in all these options except when ‘As and When Presented’ is selected the debit cannot be done beyond the specified frequency. Hence, if an investor, who has selected ‘Monthly’ as frequency, has a SIP running and wants to make second purchase in the same month then the investor would not be able to do so as his/her bank would reject this transaction. This would cause inconvenience to the investor. Therefore, we are offering only one option as frequency - ‘As and When Presented’.
Is there any per transaction limit?
The Investor can specify this in the debit amount field. Per transaction should be less than or equal to the amount as mentioned in OTM - NACH mandate.
If an investor wishes to stop availing the OTM NACH facility, what is the process?
The investor can provide the request for cancellation using the ‘OTM - NACH Update/ Cancellation form’.
Under what circumstances does an NACH mandate get rejected?
A NACH gets rejected if the investor has provided an incorrect bank account, folio number or other incorrect details. It also gets rejected if the investor’s bank is not participating in NACH.
How can an investor authorise another person to operate his accounts?
Investors can submit notarised copy of registered POA (Power of Attorney) document to authorise another person to operate his folio/account.
What is meant by Power of Attorney (POA)?
A power of attorney is an instrument that is used by people to confer authority on somebody else to legally act on their behalf. They can be of two types - Special Power of Attorney (SPA) and General Power of Attorney (GPA). While a SPA is used for transfer of a specific right to the person on whom it is conferred, the GPA authorizes the holder to do whatever is necessary.
Should the POA (power of attorney be registered? If so then with whom?
It is not compulsory to register a power of attorney unless it creates an interest in any immovable property i.e. charge in favour of done. Registration of power of attorney is optional in India, where the ‘Registration Act, 1908’, is in force. The Power of Attorney can be authenticated by a Sub-Registrar or any person authorised by him.
Can an investor disown a transaction authorised by POA?
As the investor had authorised the POA to carry out transactions on his behalf, investors cannot disown transaction authorised by POA.
Can a POA be cancelled or revoked?
POA registered in the folio/account can be cancelled or revoked any time.
What are the steps that need to be taken to cancel or revoke the POA?
Investor or POA holder will have to submit a written confirmation to cancel or revoke the POA.
What is the procedure for registration of Power of Attorney (POA) in a folio?
The POA holder needs to submit the following documents
What does Transaction charges imply?
In accordance with the SEBI Circular No. IMD/DF/13/2011 dated August 22, 2011, effective from November 1, 2011, the Fund shall deduct a Transaction Charge on purchase/subscription of Rs.10,000/- and above, wherein such purchase/ subscription is through distributors/agents who have "opted in" (Distributor has an option of “Opt In/Out” at a product category level ) to receive the transaction charge as under:
The transaction charges shall be deducted from the purchase/subscription amount and paid to the distributor/agent of the investor, as the case may be and the balance amount shall be invested in the relevant scheme opted by the investor.
In case of investment through Systematic Investment Plan (SIP), transaction charges shall be deducted only if the total commitment through SIP (i.e., amount per SIP instalment x No. of instalments) amounts to Rs. 10,000/- and above. The transaction charges in such cases shall be deducted in 4 equal instalments.
Transaction Charges shall not be deducted if:
How does transmission of units happen in case of Mutual Fund holding ?
For transmission of units the Applicants/Claimants shall be required to submit the prescribed documents under various situations as stipulated below. The transmission process is specific to mode of holding. Kindly note:
Systematic Withdrawal Plan (SWP)
Systematic Transfer Plan
What is SIP?
SIP is a facility where an investor invests a fixed amount in a mutual fund scheme at pre-determined intervals of time as specified by him/her. By investing a fixed amount of rupees at regular intervals, the investor would end up buying more units of the fund when the price is low and fewer units when the price is high. As a result, over a period of time, the average cost per unit to the unit holder may tend to be less than the average subscription price per unit, irrespective of whether it is a rising, falling or fluctuating market.
What will be the default frequency for SIP if nothing is specified in the application form?
If the investor has not specified the frequency for SIP in the application form, the default frequency would be monthly
What will happen if the investor does not specify the SIP end date in the application form?
If the investor does not specify the SIP end date in the application form or if the SIP date is unclear, the SIP will be treated as perpetual i.e the end year will be treated as 2099.
How can an investor cancel an existing SIP in the folio?
An investor can cancel an existing SIP registered with Helios Mutual Fund by submitting the SIP Cancellation request. Also, Investor can provide SIP cancellation request through online mode.
Can an investor change the bank under his/her SIP facility where the SIP is through auto debit mode?
No. In this case, the investor has to provide a cancellation for existing SIP and then provide a fresh registration with the new bank details.
What will happen if the SIP registration start date is provided prior to 21 working days from the date of request submission??
The SIP request will be accepted; however, the SIP start date will be considered as the next subsequent SIP cycle date opted by the investor. For example, Mr.ABC applies for SIP on 1st Jan 2023 and wants his SIP to start from 18th Jan 2023. His SIP will be accepted in our records and the SIP start date will be considered from 18th Feb 2023 instead of 18th Jan 2023
Can an investor modify his SIP amount during the sip tenure?
Yes, if an investor has opted for the SIP debit from his bank account through One Time Bank Mandate Registration (OTM) mode , provided such New SIP amount is less than or equal to OTBM amount .
What will happen if the SIP enrolment start date is not mentioned in the application form?
In case SIP date is not selected or mentioned, then the SIP will be registered on 10th (default date) of each Month/Quarter, as applicable. Further if multiple SIP dates are opted for or if the selection is not clear, then the sip will be registered for 10th of each Month/Quarter, as applicable.
When will the SIP get auto terminated?
In case of three consecutive failures due to insufficient balance in the investor’s bank account while processing request for SIP, Helios Mutual Fund shall reserve the right to auto terminate the SIP without any written request from the investor.
What is micro SIP?
“Micro SIP" means Systematic Investment Plans (SIPs) where aggregate of instalments in a rolling 12-month period or in a financial year i.e. April to March, does not exceed Rs. 50,000.
Which category of investors can invest in micro SIP?
Individuals (including joint holders who are individuals, NRIs but not PIOs, minors and sole Proprietary firms) can apply for the micro SIP facility.
What is the maximum investment amount available under the micro SIP facility?
Under the micro SIP facility, the maximum SIP amount can be Rs. 4,000 per month or Rs. 12,000 per quarter or Rs. 50,000 per year.
Is PAN and KYC mandatory for investors investing through the micro SIP facility?
Yes, KYC is mandatory. However, micro SIP investors are exempt from having to submit PAN.
What are the documents which can be submitted by the investor as proof of identification in lieu of PAN?
Any one of the following photo identification documents can be submitted by investors (including joint holders) along with micro SIP application as proof of identification in lieu of PAN:
What is meant by any day SIP facility?
Investor’s registering SIP through One Time Bank Mandate can select any date of a month as SIP date. In case the date chosen for SIP falls on a Non-Business Day or on a date which is not available in a particular month, the SIP will be processed on the immediate next Business Day.
What is Top-up feature in SIP??
Top-Up SIP is a process that will increase your Mutual Fund SIP Instalment amount periodically by an amount and at a set interval as defined by you. Minimum interval at which you can increase the SIP Instalment is 6 months and minimum amount by which you can increase the SIP Instalment amount is Rs. 1000.00 in multiples of 100.
What Options do I have for Top Up?
Helios offers SIP TOP UP facility with Fixed Top Up option or Variable Top Up option.
What is the frequency available for SIP Top – Up?
The frequency is fixed at Yearly and Half Yearly basis. In case the top up frequency is not specified, Default will be considered as yearly frequency.
Note - In case of Quarterly SIP, only the Yearly frequency is available under SIP TOP UP
What is meant by modify SIP facility?
Investor investing through SIP shall have an option to modify the selected scheme and / or SIP instalment amount and / or SIP end date, in the scheme wherein the SIP investments are being made. The said request has to be submitted at least 15 days prior to the next SIP instalment date (excluding the request date and the next SIP instalment date). Modify SIP details facility shall be available only for SIP registered through One Time Bank Mandate. Modify SIP details request shall be liable for rejection if the modified details do not meet the amount / tenure conditions as per the SID of the respective scheme or the registered mandate. If the investors submit request for Modify SIP for a registered SIP where the Helios MF Top Up facility is already registered, the Helios MF Top Up facility shall be cancelled immediately upon receipt of Modify SIP details request. Modify SIP facility is not available for Micro SIP.