PAN – Mutual Fund name mismatch to reject MF application

Operative from 30th April, 2024, the name on your mutual fund application must match your name on PAN otherwise the application will get rejected.

Now if you know, when you want to invest in a mutual fund, you have to submit the application for the same. So according to SEBI (Securities and Exchange Board of India) KYC rule, your name on the mutual fund application should match your name to that of your PAN card otherwise your application will be vigorously rejected.

Earlier when investors handed the mutual fund application, Registrar and Transfer Agent (RTA) used to send details like your name, and D.O.B to agencies responsible for issuing PAN cards. These agencies then used to retrogate back to your RTA with your details like your name, aadhar etc as per your PAN card. RTA then used to check and match the reverted details with your mutual fund application. For instance, if your name on your PAN was Ishmeet kaur saluja and it was IK saluja on your mutual fund application, then it was considered a match.

As of now, if it does not match exact same, the application remains rejected. The PAN issuing agencies will not revert with your details but with only a yes/no specifying your name matches or not.

Some Examples of Correct Incorrect matches are as follows:

Will it impact previous investors?

No, this rule will impact the new investors only. For the existing investors, they will not be impacted if they want to invest in the same folios. But when they wish to invest in a fresh folio, name validation is required.