In January 01, 2011 Know Your Customer (KYC) had become mandatory for all investments irrespective of the size of the investments.
Capital market regulator SEBI has decided to exempt the requirement of permanent account number (PAN) for investments up to Rs 50,000 in each AMC. The rule is applicable with immediate effect (Aug 09 2012)
Investors can now investment up to Rs 50,000 annually in a single AMC without a permanent account number (PAN).
This is a welcome change for the the MF industry which is facing tremendous pressure due to a slack stock market over the past few years and also the disinterest in the distributors towards MF.