A change in name in Mutual Fund investments is a matter which you may face for various reasons. But Mutual Fund Company knows you by few details like Name, PAN, Aadhar, Signature, etc. Name is your primary introduction. But suppose you undergo a change in your name, how will mutual fund change your name in its records?
There is a process for changing your name in mutual fund investments, based on your category of investor and extent to which name undergoes change.
A change in name may be required for various reasons and for both Individual investors and non-individual investors.
For the individual, reasons can be – change in the name (or surname) after marriage or divorce, change in name of a minor, a spelling mistake in the name or change of name by will.
Similarly, a non-individual name can also change due to change in structure for eg a partnership firm restructure to a private limited company.
Why Changing Name in Mutual Fund Investments is not simple?
MFs calls for a host of documents to ascertain the name change in their records. This is to protect you from identity theft.
Recently there was a case when miscreants changed the name of the investor by giving false documents. Then they changed the bank account and withdrew the investments!
Hence, name change in a mutual fund is allowed but with proper documentation, KYC & legal documents in case required.
Process of Changing Name in Mutual Fund Investments
The first step – Investor needs to submit Change of Name form. The form is available on most mutual funds website. The request form needs duly signed by all unit holders as per the mode of holding.
This form is required with all the cases and is the primary form.
With the letter, the following documents need to accompany the name change request/form. These documents as per the case or reason, for which the name change is required.
Reason: Investor has actually changed his/her name
- Affidavit for name change as per MF company format. (Affidavit-Name Change)
- PAN in the new name.
- PAN in the old name (if not registered).
- Bank account details with the new name as per change of bank mandate format.
- Notarized copy of Notification in Official Gazette of India OR;
- Copy of advertisement given for name change in 2 newspaper, 1 one and 1 national daily
- Any official/legal document reflecting the name change and having registered address.
Reason: Change of name consequent to marriage
- First get the name changed in PAN, AAdhar & Bank
- Notarized copy of the marriage certificate OR;
- Certified true copy of the state Gazette OR the original copy of the state gazette in which a declaration has been made to that effect.
Reason: Change of name consequent to divorce
- Notarized copy of the divorce certificate or
- Certified true copy of the state Gazette OR the original copy of the state gazette in which a declaration has been made to that effect.
Reason: Minor (small) correction in the name:
There could be a minor spelling in the name like spelling mistake and when it appears to be a genuine case should be considered for name change after doing a KYC and subject to submission of the following documents:
- Self- attested PAN card copy
- Any Document with new /revised name having registered address eg. KYC acknowledgment letter with address, Passport copy, Election card copy, Aadhaar card copy, Utility bills copy, Driving license copy, Registered bank statement copy (All documents to attested in original)
Reason: Major Correction in the name:
- Duly filled and signed standalone form from the investor.
- Tally signature on Photo ID with signature in application form filled at the time of investment
- Original canceled cheque copy from the investor with his/her name and account number clearly printed on the cheque. The name should match with the name change requested by the Investor.
- In absence of such a Cheque, an attestation from the bank manager on the letterhead of the Bank whose mandate has been provided at the time of original investment, confirming the Investors Name, Bank branch, Account number and Signature. Photo ID with Signature i.e. PAN Card (If not already available), MAPIN Card, Passport, etc.
- Indemnity Bond duly signed by all the holders in that folio.
- For Amount (valuation) less than 10,000 – plain paper (should be notarized or bankers attestation is sufficient)
- For Amount (valuation) more than 10,000/- Rs. 500 Stamp Paper (should be notarized)
Note: If the investor has multiple folios in his name and the mode of holding is ‘Either or Survivor’, and the investor is not the primary holder in all the folios, then the investor can submit a single indemnity bond for all the folios for correction of name. The same applies to joint holders in the folio. However, the investor will have to descriptively mention his folio, his name and the order of holding (1st /2nd /3rd holder)
Reason: Name change of a Minor
In case of minor or major name correction and the investor being a minor, the documents will remain the same. The Indemnity bond will be submitted by the Parent/guardian.
So name change in mutual funds is a rare event but a genuine request. We must appreciate the stringent procedure. Do let me know by email or comments section below you queries on this subject.
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