New norm to block black money in MFs

MIN had been introduced to comply with market regulator SEBI?s directive to follow ?Know Your Customers? norms and stop money-laundering, reports Arun Kumar.

Parking black money in mutual funds will become difficult from January 1 as investments of more than Rs 50,000 would be accepted only if an identification number is quoted. The Mutual Fund Identification Number (MIN) will be issued by CDSL Venture Ltd, which has made an arrangement with the Association of Mutual Fund of India (AMFI).

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MIN had been introduced to comply with market regulator SEBI’s directive to follow ‘Know Your Customers’ norms and stop money-laundering, said AMFI chairman AP Kurien. Investors would not be charged, he said. They will have to provide a photograph, an ID proof, proof of address and PAN card.