Can an NRI/ Person of Indian Origin (PIO) invest in Mutual Fund schemes in India?

Yes. NRIs / Persons of Indian Origin are entitled to invest in Mutual Fund schemes in India under a general permission from the Reserve Bank of India. However, US persons and residents of Canada are restricted for investment into the schemes of Kotak Mutual Fund.

 
How can an NRI investor invest in Mutual Fund schemes in India?

NRI Investors can invest in our schemes either through money lying to the credit of their NRO / NRE / FCNR Account or through approved Banking Channels. An NRI investor cannot invest in foregin currency.

 
What the different modes of investment in the schemes of Kotak Mutal Fund?

An NRI investor can invest through Physical Mode or through Electronic Mode.

For investment through physical mode, the investor has to submit duly filled in investment application form along with investment cheque drawn in the name of the scheme, his KYC Acknowledgement and FATCA Declaration Form.

For investment through electronic mode the investor can invest Online through Online Transaction Portal - https://online.assetmanagement.kotak.com/

 
Can an NRI investor register overseas bank account details?

No, an NRI investor cannot register his overseas bank account details. He has to mandatorily maintain a bank account in India.

 
How can an NRI investor get his redemption proceeds?

The redemption proceeds of a unitholder shall be paid to first unit-holders registered bank account details only. Redemption proceeds shall be payable in Indian Rupees only.

 
How can an NRI Investor seek repatriation of the redemption proceeds?

NRI Investors can seek repatriation of the redemption proceeds on their investment where the investment is made through debit to their NRE / FCNR Account. Income earned on NRI investments by way of dividend is freely repatriable irrespective of the source of investment.

 
What is the tax treatment for NRI investor?

The tax treatment for NRI investors with respect to Mutual Fund investments is the same that is applicable for Resident Investors except that applicable tax would be deducted at source for NRIs. Click Here for detailed information on Taxation for Mutual Fund investors

 
What is the proof of the Tax Deduction at Source?

A TDS certificate is issued in the name of the First/ Sole Unitholder mentioning the details of the transaction and the tax deducted.

 
How can an NRI investor get the TDS Certificate?

The TDS Certificates (Form 16A) are despatched to the investors once in a quarter.

 
Can a Power of Attorney (POA) invest on behalf of the NRI investor?

Yes, a POA holder can invest on behalf of the NRI investor. The POA holder needs to submit a duly attested / notarised copy of POA. The Power of attorney should contain the signature of the first holder and the POA holder. Only when the POA is registered does the POA holder have the right to transact on behalf of the NRI investor. His signature will be verified for processing any transaction/ request.

 
Can Nomination be allowed for an investment where the first unit holder is NRI?

Yes, nomination is allowed only for NRI investors.

 
Can a resident Indian have an NRI as nominee?

Yes, an NRI can be a nominee in a folio where the first/sole unitholder is a Resident Indian.

 
Can an NRI investor request for change in tax status, to Resident Individual?

Yes, an NRI investor can request for change in tax status for his existing investment. However, such request needs to be accompanied with a request for Change in his Bank Details as well.

 
Can a Resident Individual investor request for change in tax status, to NRI?

Yes, a resident individual investor can request for change in tax status for his existing investment. However, the tax status can be changed to only on Non-Repatriable basis. Also, such a tax status request needs to be accompanied with a request for Change in the Bank Details as well.

 
Change of Address

In the event that an Investor wishes to change his address in our records, he needs to submit below mentioned documents to any of our/ CAMS Investor Service Centers :

  1. A request for Change of Address on a Transaction Slip or by way of a letter.
  2. An attested copy of Proof of new Address
  3. An attested copy of PAN Card. If PAN is not updated in the folio, then PAN/other proof of identity is required.

Kindly note that in case a unit holder is KYC Compliant, he needs to submit the requisite   documents to the KYC Registration Agency (KRA) for updating the new address. Once the address is updated with the KRA, the unit holders' address would be automatically updated in our records.

 
Change of Bank Details

In the event that an Investor wishes to Change his Bank Details in our records, he needs to submit the below mentioned documents to any of our/ CAMS Investor Service Centres

  1. Request for Change of Bank Mandate on the Change of Bank Mandate form or through Multiple Bank Account Registration Form,
  2. Any one of the following documents
    • Cancelled Cheque leaf (original) of the new bank mandate with first unit holders' name and bank account number printed on the face of the cheque; or
    • Self attested copy of bank statement; or
    • Bank passbook copy with current entries not older than 3 months; or
    • Bank Letter duly signed by branch manager/authorized personnel
  3. Proof of Existing Bank Mandate registered in the Folio. Any one of the following documents submitted for the same
  • Cancelled Cheque leaf of the bank mandate; or
  • Copy of bank statement; or
  • Copy of bank passbook copy; or
  • Letter issued by the Banker confirming the Account Holders Name, Acount Number, PAN and Address.

 
Change of Name of Investor

In the event that an Investor changes his name, the Investor will have to submit the following documents, in case of Individual Investor :

  1. Request Letter to update the new name in AMC/ RTA records
  2. Certified copy of the gazette notification regarding change of name
  3. Certified copy passport/documentation under the relevant jurisdiction evidencing the change in name (in case of a NRI/OCB)
  4. In case of change of name of an Investor due to marriage, the Investor would have to furnish the details along with the certified copy Marriage Certificate.
  5. Self Attested copy of PAN Card bearing the new name
  6. KYC Acknowledgement of the investor bearing the new name

Below mentioned documents would be required for Change of Name for a non-individual investor :

  1. Request Letter to update the new name in AMC/ RTA records
  2. Copy of Certificate of Incorporation consequent to Change of Name - truly and completely attested either by Notary Public or Company Secretary 
  3. Board Resolution
  4. Authorized Signatory List
  5. Court Order, if any
  6. Copy of PAN Card - attested by Company Secretary
  7. KYC Acknowledgement of the investor bearing the new name

 
Change of Guardian

In case of a change in guardian either due to mutual consent or demise of existing guardian, the below mentioned documents are required to be submitted for registering the new guardian,

  1. Request Letter from the New Guardian,
  2. In case the existing guardian is alive, No Objection Letter (NoC) or Consent Letter from existing guardian or Court Order is required
  3. Notarized copy or attested copy of the Death Certificate of the deceased guardian, where applicable
  4. Bank attestation attesting the signature of the new guardian in a bank account of the minor where the new guardian is registered as the guardian
  5. Cancelled Cheque Leaf of new Bank account/ Attested copy of Cancelled Cheque Leaf of new Bank account
  6. In case of natural guardian, any suitable proof evidencing the relationship status of the guardian with minor
  7. In case of court appointed legal guardian, supporting documentary evidence shall be submitted
  8. KYC acknowledgement of New Guardian

It is important to note that the new guardian must be a natural guardian (i.e. father or mother) or a court appointed legal guardian.

 
Change in Status from Minor to Major

In case of a minor reaching majority, the investor would have to submit the following documents for changing the status in AMC records:

  1. Service Request Form/ Letter duly filled & signed by Major along with attestation by Guardian.
  2. New Bank mandate where account changed from minor to major.
  3. Signature attestation of the major by a manager of a scheduled bank / Bank Certificate / Letter.
  4. Self Attested Copy of PAN Card of the major
  5. KYC acknowledgement of the major.

Kindly note that the AMC shall continue to deal with the guardian till such time there is a communication on the attainment of majority in writing from the minor

 
What is KYC ?

KYC is an acronym for "Know Your Client", a term commonly used for Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to 'know' their clients. This would be in the form of verification of identity and address, financial status, occupation and such other personal information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.

An investor can Click Here to check the KYC status across all KYC Registration Agencies.

You can click on the below link to download the respective KYC Form

 
How can an investor get his account statement ?

An investor with an email address registered in his folio, can use Kotak Mail-back Service to obtain a PDF Account Statement at his registered email address.

The investor can also view his account statement by logging into the Online Transaction Facility.

An investor can also call our Customer Service numbers on 91-22-66056825 / 1800-222-626 (Toll-Free) to request for an Account Statement. He can also write to us at mutual@kotak.com. Else, he can also walk into any our investor service centre and request for a hard copy of his account.

In case your email id is not registered with us, all you have to do is to fill the services form, sign it and send it across to us for registration. Once your email id is updated in our records, you can start using the mail-back service to receive your account statement on your registered email address

 
NEFT / RTGS and ECS

NEFT/ RTGS Payout

Kotak Mutual Fund offers the facility of receiving redemption/ dividend proceeds directly into the Bank Account of the investor vide RTGS/ NEFT route. This facility comes automatically to you (unless you choose otherwise) if you have provided your complete bank details with Core Banking Account Number and IFSC Code.

In case an investor wishes to avail of RTGS/ NEFT facility, he needs to submit the below mentioned documents :

  1. Duly completed Service Request Form
  2. Cancelled Cheque Leaf (mandatory)

ECS of Dividends

ECS (Electronic Clearing Service) is a Reserve Bank of India offering to facilitate faster and seamless payout of dividends directly into your bank account.

ECS as a mechanism for payout of Dividends is faster, convenient, cost-effective and hassle-free. Besides, the investor does not run the risk of loss of dividend instrument in transit and the associated delays in obtaining a duplicate instrument.

This facility is currently offered across all banks in over 91 locations.

 
Nomination - Registration / Cancellation & Change of Nominee

An investor can register a nominee, make changes to the existing nomination under his folio as well as cancel the existing nomination by using the Nomination Form.

Few important points to note in respect of the same:

  • The nomination can be made only by individuals applying singly or jointly.
  • Non-individuals including society, trust, body corporate, partnership firm, karta of Hindu Undivided Family, holder of Power of Attorney cannot nominate.
  • Nomination cannot be updated in a folio held on behalf of minor.
  • Minor(s) can be nominated and in that event, the name, address and signature of the guardian of the minor nominee(s) shall be provided by the unitholder.
  • Nomination can also be in favour of the Central Government, State Government, a local authority, any person designated by virtue of his office.
  • The Nominee shall not be a trust other than religious and charitable trust.
  • A non-resident Indian can be nominee subject to the exchange control regulations in force, from time to time.
  • Transfer of unit in favour of Nominee(s) shall be valid discharge by the Asset Management Company against the legal heir.
  • The cancellation of nomination can be made only by those individuals who hold unit on their behalf singly or jointly.
  • On cancellation of nomination, the nomination shall stand rescinded and the Asset Management Company shall not be under any obligation to transfer the units in favour of the Nominee(s).
  • If there is multiple nomination and the percentage is less than 100% then the balance will be re-balanced to the first unitholder. If percentage is greater than 100% then nomination would be rejected.
  • Nomination in respect of the units stands rescinded upon the transfer of units.

 

 
Pledge of Units / Lien on Units

Lien Marking

The units under the respective scheme(s) may be offered as security by way of a pledge/ charge in favour of scheduled banks, financial institutions, non-banking finance companies (NBFCs) or any other body. The AMC and/ or the ISC will note and record such Pledged Units.

Documents required to be submitted by the unit holder for this purpose, are stated below:

  1. Request Letter from Investor
  2. Board Resolution + Authorized Signatory List  of Investor (in case the investor is non-individual)
  3. Request Letter from Financier
  4. Board Resolution + Authorized Signatory List of Financier

The AMC shall mark a lien only upon receiving the above stated documents

The Pledgor will not be able to redeem units that are pledged until the entity to which the units are pledged provides written authorization to the Mutual Fund that the pledge / lien charge may be removed. As long as units are pledged, the Pledgee will have complete authority to redeem such Units.

Lien Release

The financier needs to submit Lien Release Letter preferably in standard format for un-pledge of units / lien release on units.

Lien Invocation

In the event, that a financier desires to invoke the lien in respect of the units pledged in their favour, they need to submit Lien Invocation Letter preferably in standard format.

 
Consolidation of Folios

Consolidation of Folios

Unit holders of any of the schemes of the fund have the option of consolidating their investments under separate folios into a single folio, provided the mandated details in all their folios are same.

How to Consolidate?

The request for consolidation of folios must be signed and submitted at any of the Official Acceptance Points or at the office of the Registrar at Chennai on any Business Day. For consolidation of folios, the following details in all the folios should match:

  • Unit Holder(s) Name
  • Order of Unit Holder(s)
  • Mode of Holding
  • Contact Details
  • Bank Mandate
  • Signatures of Unit Holder(s)
  • Nomination Details

 
Transfer of Units

Units held, either in the form of Account Statements or in the form of unit certificates, are non-transferable. The Trustee reserves the right to make the Units transferable at a later date subject to the Regulations issued from time to time.

Also, any addition / deletion of name from the folio of the unit holder(s) are deemed as transfer of units. In view of the same additions/ deletions of names will not be allowed under any folio. The said provisions in respect of deletion of names will not be applicable in case of death of a unit holder (in respect of joint holdings) as this is treated as transmission of units and not transfer. Also the said provisions shall not apply for change of name.

Further, it is important to note that the units of Exchange Traded Funds and units held in demat form, are transferable subject to the provisions of the Depositories Act, SEBI (Depository and Depository Participant) Regulations, 1996 and other applicable provisions.

Thus, Units of all schemes of Kotak Mahindra Mutual Fund which are held in demat form shall be freely transferable under the depository system.

 
Transmission of Units

Transmission is the process by which units of a deceased account holder are transferred to the surviving joint holder(s) / nominee/ legal heirs of the deceased account holder.

Click here for list of documents of documents required for Transmission under different scenarios

 
Online Transaction

Unit holders of any of the Schemes of Kotak Mahindra Mutual Fund have the option of using the Online Transaction facility of Kotak Mutual Fund. Using this facility an investor can Purchase, Switch, Redeem units of any scheme of the Fund.

The Investor will have to provide the following documents for availing this facility:

  1. Duly completed & signed Online Transaction Facility Form
  2. KYC acknowledgement of all holders

 
Power of Attorney

In the case of an application by Power of Attorney (POA) holder on behalf of a unit holder, an attested / notarized copy of the POA along with the KYC Acknowledgement of the POA needs to be submitted along with the investment application form.

Incase of non-receipt of certified copy of POA/ KYC Acknowledgement of POA holder, the application is liable to be rejected or a request for redemption/ switch may not be processed.

The POA can be attested by :

  • A gazette officer; or a practicing Chartered Accountant or Advocate; or
  • The manager of a public sector bank, specifying the manager's bank identification number; or
  • Notarised by a Notary Public.

The POA registered under a folio can be revoked by way of a request letter from the investor.

 
Documents Required Along With Application Forms

The investment application form needs to be accompanied with :

  1. Investment cheque mentioning the amount and favouring the scheme in which the investor wants to invest. Ensure that it should be dated and signed
  2. KYC Acknowledgement of all applicants are submitted
  3. A cancelled Cheque leaf of the Bank is enclosed in case your investment cheque is not from the same bank account.

Further, please ensure that:

  1. The Application Form is complete in all respects & signed by all applicants
  2. Name, Address and Contact Details are mentioned in full.
  3. Bank Account Details are entered completely and correctly.
  4. The 9 digit MICR Code and the 11 IFSC Code of the bank account is mentioned in the Application Form.
  5. KYC Acknowledgement of all applicants are submitted
  6. Appropriate Investment Option is selected. If the Dividend Option is chosen, Dividend Payout or Re-investment and Dividend Frequency is indicated.
  7. If units are applied for Jointly, Mode of Operation of account is indicated.
  8. Investment Cheque/ DD is drawn in favour of Scheme / Plan, dated and signed.
  9. Please write the Application Number/ Folio Number on the face of the cheque (eg. Kotak Opportunities - 12345/67)
  10. A cancelled Cheque leaf of your Bank is enclosed in case your investment cheque is not from the same account.

Click here to view the documents required along with the Application Form (as applicable to your specific case)

 
Revalidation of Dividend/ Redemption Warrant

In case an Investor intends to change the bank details printed on the dividend/ redemption warrant received by him or incase the same has expired, he needs to submit the below mentioned documents to Kotak Mutual Fund:

  1. Original Dividend/ Redemption Warrant received by the investor
  2. Request letter for revalidation in the attached format
  3. Incase of Change of Bank Details any one of the below mentioned documents need to be submitted
  • Cancelled original cheque of the new bank mandate with first unit holder name and bank account number printed on the face of the cheque.
  • Self attested copy of bank statement.
  • Bank passbook with current entries not older than 3 months.
  • Bank Letter duly signed by branch manager/authorized personnel.

Please note that in case of receipt of new bank details, the revalidation request will also be treated as a change of bank mandate request. Resultantly, the new bank account details will be updated in our records, subject to receipt of necessary documents from the Investor.

It is important to note that in case of revalidation of dividend/ redemption, Kotak Mutual Fund shall attempt to payout the Dividend / Redemption vide electronic payment to the updated bank account, in lieu of the warrant.

 
Loss / Non-Receipt of Dividend/ Redemption Warrant

In case an Investor has lost/ not received his dividend or redemption warrant, the same can be brought to the notice of Kotak Mutual Fund. The Investor will have to provide the following documents for re-issue of duplicate dividend/ redemption warrant

  1. Request letter for issue of duplicate warrant
  2. Indemnity Bond - It should be stamped as per the law in the place of execution.

It is important to note that wherever possible, Kotak Mutual Fund shall attempt to payout the Dividend / Redemption proceeds vide electronic payment to the updated bank account, in lieu of the warrant.

 
Units in Demat Account

Pursuant to SEBI Circular no. CIR/IMD/DF/9/2011 dated May 19, 2011, investors of Kotak Mahindra Mutual Fund have an option of holding the units in demat form with effect from October 01, 2011.

Investors have to provide the demat account details on the investment application form along with the supporting documents evidencing the accuracy of the demat account.

However, the option of holding units in demat form is not being currently offered for SIP/STP/SWP investments registered directly through Kotak Mahindra Asset Management Company Limited / Registrars and Transfer Agents, and also for dividend options having dividend frequency of less than a month.

Investors are requested to get in touch with Investor Service Centres (ISCs) of Kotak Mahindra Mutual Fund or their respective brokers for further details.