Impact on MF Transactions due to CVL KRA Non-Availability

NOTICES

Notice No.		20221123-12		Notice Date		23 Nov 2022
Category		Trading		Segment		Mutual Fund
Subject		Impact on MF Transactions due to CVL KRA Non-Availability
Content

This is with reference to Notice No. 20221122-11 dated November 22, 2022 in respect of delay in EKYC updation with CVL KRA.

We have received the below communication from Registrar & Transfer Agents (RTA's) with respect to impact on MF transactions due to CVL KRA Non-Availability, which is reproduced below:

As you aware, access to CVL KRA is not available till 6.00 pm on 23^rd November 2022 (Wednesday) due to their internal technical issue.

As per the communication from CVL, there will be an impact in the IOP (Inter-Operability Process) process among KRAs for ascertaining KYC status and CIN CVL validation, which is used for identification of new and existing investors for the purpose of transaction charges deduction. As this will have major impact on transactions placed by first time investors to the fund / placed modification request or fresh KYC application along with MF transactions, RTA'S will be following the process detailed below (only for the limited period till CVL / CVLKRA systems are up and running):

1. As CIN CVL Validation process is not in place, RTA'S will not be able to ascertain whether the customer is new to MF industry or existing customer. RTA'S will consider as 'Existing' on conservative basis till CIN CVL validation process becomes Live.
2. In case of CVLKRA, for new PANs / existing PANs through IOP process where KYC status could not be ascertained - RTA'S will validate whether such PANs exist in any other Fund serviced by RTA'S and their KYC status is verified/completed. If KYC status is found as verified/completed, RTA's will process as exception.
3. If the PANs do not exist in any of the RTA'S serviced Funds, RTA'S will check whether any physical application / modification request exists. If available, RTA'S will process based on the physical document available, if found in order.
4. If any of the above actions are not possible, RTA'S will keep the transactions on hold and will process as missed once normal process is restored.
5. In case of Exchange (Demat) transactions, RTA'S will process based on the KYC status received in the feed and processed as per the existing process.
6. Financial transactions including Subscriptions, Redemptions and Switches might get impacted and resultant delays in payouts and funding.

Ketan Jantre Zeeta Eustace<_o3a_p>

Sr. General Manager - Mutual Funds Dy. General Manager - Mutual Funds<_o3a_p>

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