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Ch.4 · SEBI Mutual Fund Regulations · hard

Is PAN mandatory for mutual fund investments in India?

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EXPLANATION

PAN is mandatory for all mutual fund investments. However, SEBI has provided a limited exemption for micro SIPs (up to ₹50,000 per year per investor) where Aadhaar-based KYC can be used in lieu of PAN under specific conditions.

A.No, PAN is optional for investments below ₹50,000

B.Yes, PAN is mandatory for all investments without any exemption

C.Yes, PAN is mandatory for all investments, with a limited exemption for small investors using Aadhaar [✓ Correct]

D.No, Aadhaar can be used instead of PAN for all investments

EXPLANATION

PAN is mandatory for all mutual fund investments. However, SEBI has provided a limited exemption for micro SIPs (up to ₹50,000 per year per investor) where Aadhaar-based KYC can be used in lieu of PAN under specific conditions.

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