Submission of PAN

As you are aware, Securities and Exchange Board of India has made PAN the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction, effective July 2, 2007. Investors are required to submit a copy of their PAN card when investing with Mutual Funds.

For investors not having a PAN, but desiring to invest in mutual funds, SEBI had given an exception up to December 31, 2007 that, they could submit evidence of having applied for PAN (via copy of Form 49A) and Form 60 with address proof (where applicable) instead of PAN.

Only PAN card copy is accepted as PAN proof, effective
January 1, 2008

Effective January 1, 2008 however, submission of PAN card copy (irrespective of the amount of investment) is mandatory for all applicable transactions and Form 49A / 60 or evidence of PAN other than a PAN card will not be accepted.

Submission of PAN card copy is mandatory for all existing as well as prospective investors (including joint applicants / holders, guardians and NRIs) for investing with Mutual Funds from January 1, 2008.

This will also mean that those investors who had earlier provided Form 49A or copy of application for issue of duplicate PAN card must submit a copy of their PAN card to us immediately, to continue transacting with us.

Investors can submit copy of PAN card alongwith original for verification which will be returned across the counter or submit a copy of PAN card attested by a manager of a scheduled commercial bank (the designation seal should be affixed), notary public or gazetted officer, or their distributor, at any Franklin Templeton Investor Service Centre.

You also need to complete KYC formalities

Effective February 1, 2008 for any investment (Purchases / Additional Purchases and new SIP registrations) of Rs.50,000 or more, KYC must be completed for all individual unitholders  /  investors in a folio (including guardian where the investor is a minor and NRIs) irrespective of the mode of holding, and any Power of Attorney holders. For non-individual investors, KYC must be completed irrespective of the amount of investment. Investments where KYC is not registered may not be accepted.

In this regard, Association of Mutual Funds in India (AMFI) has started releasing series of advertisement through various leading newspapers, on behalf of mutual funds.

If you have already completed KYC and PAN formalities through CVL and obtained a KYC acknowledgement, please submit a copy of the same to us along with a list of folio number(s). After verification, folio(s) will be updated in our records and you can continue to transact with us as before.

Completing KYC and PAN formalities is simple

Investors will need to submit a completed KYC application form affixing a copy of their recent passport-size photograph along with copy of PAN card and proof of address for Individuals, or Corporate Documents for bodies corporate, at any designated 'Point of Service' Centre of CDSL Ventures Ltd ("CVL"). Applications may also be submitted at any Franklin Templeton Investor Service Centre alongwith your investment.

CVL has been appointed by a majority of mutual funds to complete KYC and PAN formalities on their behalf and hence investors need to submit their details only once for completion of KYC formalities across these mutual funds.

All documents must be submitted in original along with a self-attested copy. The original will be returned across the counter after verification. Alternatively, investors may submit copies duly attested by a manager of a scheduled commercial bank (the designation seal should be affixed), notary public or gazetted officer.

On submission of the KYC application form and documents to CVL, investors will receive an acknowledgement across the counter, a copy of which must be submitted to us as proof of having completed KYC and PAN formalities.

Please note that once you have completed KYC formalities, there is no need to separately register your PAN with Mutual Funds.

Non-completion of PAN and KYC formalities:

Effective January 1, 2008, investments of any value with Franklin Templeton Mutual Fund may not be accepted in cases where copy of PAN Card (along with original for verification or a duly attested copy) is not submitted for any holder, including Guardian.

Effective February 1, 2008, investments of value Rs.50,000 or more with Franklin Templeton Mutual Fund may not be accepted in cases where KYC formalities have not been completed and / or KYC acknowledgement is not enclosed for any holder, including Guardian or Power of Attorney holder as applicable.

As the above requirements are mandatory, we request your cooperation in completing these formalities without delay

Contact us in case you need assistance

Please call us at 1800 425 4255* or 6000 4255**, or e-mail us at ftkyc@templeton.com for any assistance.

We look forward to your support in complying with these important regulatory changes, as this will help us to continue providing you excellent service.

* For MTNL/BSNL users only. ** If calling from a mobile phone, please prefix the city STD code. Local rates apply for both numbers.