Nishant Patnaik May 6, 2024
Drama starts where logic ends.
By Ram Charan, Noted Author
According to the new norms, mutual fund investors will have to ensure that their name and date of birth appearing on PAN and MF folio match completely.
As part of this guideline, fund houses will have to verify the PAN of their clients at the Income Tax website without insisting on the copy of PAN card.
So far, the process was executed purely on logic basis. For instance, if the name appearing on MF application is R Sharma and PAN is Rohit Sharma, it was considered as valid match. Another example is NP Pvt. LTD in MF application and NP Private Limited in PAN was considered a valid match.
Simply put, RTAs like CAMS and KFintech were allowed to build additional name-matching logic to facilitate transaction.
However, under the current guidelines, RTAs can only seek reverse feed from the Income Tax Department (ITD) and PAN Card with a ‘Yes’ or ‘No’. This takes away the liberty of RTAs of applying the name matching logic at their end.
Even minor variation like expansion of initials, change in order of name can be considered a clear ‘No’ or mismatch.
Let us look at the table to understand this:
Name on MF Folio
Name as per PAN
Validation status
KAPIL SHAH or Kapil Shah
