Association of Mutual Funds in India (Amfi) has asked market regulator Sebi for further extension of deadline to comply with know your client (KYC) norms. In December 2009, Sebi had made it compulsory for fund houses to maintain all investor-related documents including power of attorney and KYC documents. They were told to collect these information from their distributors and April 1, 2010, was fixed as the deadline. However, as mutual funds were unable to meet the deadline, Amfi asked for an extension of one more month. Yet, mutual funds couldn't meet the target.

“We need more time as it requires lot of documentation. We have asked Sebi to extend deadline by one more year” Amfi CEO HN Sinor said. He added that since these details have to be culled for investors dating back years, it takes time. SBI Mutual Fund MD Achal Kumar Gupta said, “We are still in process to get all the details of investors from the distributors.” He denied commenting further on the issue.

Sebi in its December 2009 circular had stated that, if distributors fail to provide the investor information, then trustees of mutual funds were advised to not pay commission or fees to distributors. A CEO from the leading fund house on condition of anonymity said, “It is very difficult to get all the detail from the distributors. There are also instances that despite sending multiple reminders, distributors have failed to give us the details. This has led to delay in payments of trail brokerages to the distributors selling mutual funds.”

There are close to 4.6 crore retail folios of the mutual fund industry, as per AMFI data. Ballpark estimates put the number of unique mutual fund investors at 1 crore, assuming that on an average, there are four folios maintained by a single investor. The challenge is that distributor would have to cull data for such investors dating back anywhere from '93, when private mutual funds started operations in the country.