Dear All,
I write this with an intention to bring the things in the notice of SEBI and AMFI.
There are sounds everywhere to "go green", including the messages from SEBI/ AMFI. But, in practice the aspect is ignored altogether. I may quote a few instances as under:
(i) At the time of submission of an application for new purchase, additional purchase or a switch request, photocopy of KYC acknowledgement is insisted upon by the registrars. It should not be necessary at all because the executive accepting the application may conveniently verify (and certainly verifies) the KYC details online, before logging in the applications. Why this extra paper (KYC acknowledgement) has been mandatory by SEBI (as told by KARVY/ CAMS). Without this extra paper they strictly refuse to accept the applications.
(ii) There is a legend written on the back of KYC DETAILS CHANGE FORM reading as "Self attested copy of PAN card is mandatory for all clients in all type of change request". Why it has not been considered sufficient to furnish the PAN on the appropriate place in the form itself and subsequent verification by the KRA concerned before effecting desired changes. It is difficult to understand how a self attested copy of PAN card is going to verify the antecedents of the investor, which can be verified in the absence of this useless extra paper also.
(iii) There is no necessity of full page common application form in case of every new purchase, asking the details, like Status, Occupation, Date of birth, Nationality, Mailing address, mobile/ phone number, e-mail etc., as they are already available with KRA under KYC details and are conveniently approachable. The duplication of such details fetches nothing to AMC.
(iv) A single common format for all purposes for all AMCs should be devised by SEBI/ AMFI wherein all the desired necessary informations can be furnished by the investors. At present, all the AMCs have devised the forms according to their sweet will exhibiting no uniformity and without any regard to wastage of papers.
These are only a few instances which represent avoidable wastage of paper and in the existing shape they are fetching nothing. If considered in the light of foregoing, there may be sizable cost cut at AMC level also apart from better convenience to the investors.