Keep all customers' records, Sebi tells MFs

Keep all customers' records, Sebi tells MFs

As part of its norms on anti-money laundering and combating financing of terror, Sebi asked MF distributors to ensure that all the investor-related documents are maintained and available with them.

“It is prescribed that it is the responsibility of the intermediaries to ensure customer due diligence by obtaining sufficient information to identify persons, have a policy in place for acceptance of clients and client identification procedure, monitoring of transactions etc,” Sebi said in a statement issued here on Friday.

The regulator said it has come to know that all the documentation related to the investor including know-your- client, power of attorney in respect of transactions and requests made through some MF distributors is not available with the asset management companies.

The regulator has also said in case the documentation is not complete, the MF trustees should not make further payment of any commissions, fees or payments in any other mode to such distributors till full compliance is done.

In such case they should also take immediate steps to obtain all supporting documents in respect of the past transactions and also on a one time basis, send statement of holdings and all transactions since inception of that folio in duplicate to the investor and seek confirmation from the unit holders on the duplicate copy.