Calcutta, Dec. 27: Mutual fund investors will now require a Mutual Fund Identification Number (MIN) to comply with the know-your-customer (KYC) norm that the regulators are putting in place to check money laundering.

“Initially, anyone investing Rs 50,000 or more in a mutual fund scheme will have to obtain an MIN, which will be effective from January 1, 2007,” said A.P. Kurian, chairman of the Association of Mutual Funds of India (Amfi).

Investors will get an MIN free of cost if they produce a photograph, proof of identity, proof of address and PAN card.

“Investors could obtain MIN application forms from points of services (POSs). Initially, every mutual fund house, their registrars and banks will identify some of their branches and offices as POSs. Investors can also download the form from the websites of all mutual funds and Amfi,” Kurian said.

As the government has taken a major drive to weed out money laundering and black money from the system, regulators such as the Reserve Bank, Insurance Regulatory and Development Authority, Securities and Exchange Board of India (Sebi) and Telecom Regulatory Authority of India have issued specific guidance on KYC norms to be strictly followed by their members.

Sebi had made PAN mandatory for all transactions in shares and derivatives from January 1, 2007 and had issued KYC guidelines to mutual funds wherein investors investing more than Rs 50,000 or more in a mutual fund scheme would have to obtain the MIN from the next year.

The proposed Mutual Fund Identification number (MIN) will carry a photo, proof of residence and permanent account number details of the investor, so that mutual funds and the market regulator can identify investors putting money in mutual funds.