SEBI Proposes Uniform KYC Process for New Mutual Fund Folios
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- By Chetan Kulasri
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- Last Updated on 25 October, 2025
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Consultation Paper; Dated: 23.10.2025
The Securities and Exchange Board of India (SEBI) has issued a Consultation Paper proposing the standardisation of procedures for opening mutual fund folios and executing the first investment.
1. Key Proposals
- KYC Compliance Requirement – New folios opened by investors must be fully KYC-compliant both at the Asset Management Company (AMC) level and within the KYC Registration Agency (KRA) system.
- Transaction Eligibility – Investors will be permitted to initiate transactions only after the KRA and the folio complete the KYC verification process and are marked as ‘KYC Compliant’.
2. Stakeholder Feedback
SEBI has invited comments from the public and market participants on the proposed framework.
Feedback can be submitted through the SEBI web form by November 14, 2025.
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