From January 1, 2007, if you wish to invest Rs 50,000 or more in any mutual fund scheme, you will have to obtain a special number called Mutual Fund Identification Number. The MIN application form can be downloaded from the AMFI website (www.amfiindia.com) or from the website of the Mutual Fund with whom you invest. You may also approach your distributor for a form.
The documents that you will have to provide are:
(1) Photograph (2) Proof of Identity (3) Proof of Address (4) PAN Card
Thankfully only one MIN would be required across all mutual funds
MIN will be provided absolutely FREE OF COST to the investors.
Investors should obtain the MIN from the Points of Services. To start with, these POS will be the selected branches / offices of mutual funds, registrars and selected branches of banks. The application form for applying for MIN will also be available from these POS.
The AMFI website contains a detailed FAQ list. The following are excerpts for investors to get a bird's eye view.
- There are no exceptions for MIN. Anyone who wishes to invest Rs. 50,000 or more in any scheme needs to obtain MIN. This would also apply to Systematic Investment Plan transactions, even if the SIP was registered prior to 1st January 2007.
Any switches made from existing investments or dividends re-invested do not require a MIN. All joint holders will be required to quote their MIN.
- An existing investor who continues to hold investments without further purchases of Rs 50,000 or more will not require a MIN, it is in the interest of all investors to obtain a MIN and submit it to the Mutual Fund to a any inconvenience in future.
- The MIN will normally be communicated across the counter after preliminary verification of documents. However, based on final verification of the documents, the MIN may be cancelled/rejected in case of deficiency of documents or incomplete information observed in the final verification. A separate communication intimating about the cancellation / rejection of MIN will be sent by CVL.
- Once a MIN is obtained and transacted within a period of three years, it will exist in perpetuity. It is not necessary to quote the MIN for every transaction. Once the MIN is informed to a Mutual Fund, it will be registered against the folio and quoted in all future account statements.
In the case of multiple folios/accounts with a Mutual Fund the investor can inform the Mutual Fund to update the MIN against all the folios/accounts. However, each of the holders in these folios should have a MIN of their own.
- NRIs cannot obtain a MIN from their location. The form duly completed along with the necessary documents should be mailed to the NRI's representative or Distributor who can then obtain the MIN for the NRI.
In addition to the certified true copy of the passport, certified true copy of the proof of overseas address and permanent address will also be required.
If any of the documents (including attestations / certifications) towards proof of identity or address is in a foreign language, they have to translate into English for submission. The documents can be attested by the Consulate office or overseas branches of scheduled commercials banks registered in India.
- Minors cannot apply for a MIN. In case of a Minor, the Guardian of the minor has to obtain and quote his / her MIN in the Mutual Fund form while investing. Upon a minor attaining the age of majority, he/she must obtain a separate MIN in his/her own name.
- The POA holder is also required to obtain a separate MIN in his/her own name and quote it along with the investors' MIN while investing on behalf of the investor.
Comments:
Seeing as it were that it is already the end of December that these guidelines have come out, investors should have been given more time to obtain a MIN for themselves. January 1st with 30th and 31st of December being the weekend is too little time.
Secondly, investors wishing to invest Rs 50,000 or more already supply their PAN, which in itself is a unique identity number. One just wonders why have a separate number when the system of PAN exists. For example, from January 1st, PAN is compulsory for trading in the stock market. A similar requirement could have sufficed.
Perhaps, it is to do with investors' reluctance to obtain a PAN, especially those who are not in the tax net. Many feel that it is compulsory to file tax returns if one obtains a PAN.
In any case, in the interest of preventing money laundering and strengthening the regulatory mechanism, the authorities have come out with the MIN requirement. It is hoped that investors comply with the same and make our markets that much more healthy. No one wants a repeat of the MAPIN debacle.
The writer may be reached at sandeep.shanbhag@moneycontrol.com
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