New Delhi : Sebi on Thursday proposed to standardise the process for opening mutual fund folios and executing the first investment, aiming to ensure these folios are created only after verification.The proposal seeks to address issues arising from cases where folios are opened before the completion of Know Your Client (KYC) verification by KYC Registration Agencies (KRAs).

Currently, Sebi mandates that new folios be opened only after mandatory KYC verification; certain instances of KYC non-compliant folios have surfaced due to the sequential process followed in the mutual fund industry.Sebi said the Asset Management Companies (AMCs) conduct their own internal KYC checks before forwarding documents to KRAs for final verification. If the KRA later identifies discrepancies during the review

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