As per SEBI directive, effective from July 2, 2007, Permanent Account Number [PAN] issued by Income Tax Authorities has been made the sole identification number for all participants transacting in the securities market, including Mutual Funds, irrespective of the amount of transaction. Consequently, it is mandatory for all existing as well as prospective investors [including Non Residents Indians, joint applicants and guardians] to furnish a copy of their PAN card while investing in Mutual Funds. In view of the above, with effect from July 2, 2007, investors are required to submit a copy of PAN card along with the application form. Original PAN Card has to be offered for verification at the point of such investment [which will be immediately returned across the counter] or alternatively, certified* copy of PAN card can be submitted. Investors are advised to register their PAN with the AMC by providing their certified* PAN card copy along with a list of their folio numbers for verification and update.

Further, as directed by SEBI, on submission of sufficient documentary evidence, submission of PAN shall not be insisted in case of Central Government, State Government and the officials appointed by the Courts e.g. official liquidator, court receiver etc. (under the category of Government) while investing in Mutual Funds. Additionally, subject to submission of sufficient documentary evidence submission of PAN shall not be insisted for residents of Sikkim.

* A copy of PAN card can be certified* by any of the distributors of Principal Mutual Fund holding ARN, the identified officials of AMC across all branches, Investor Service Centers, Bank Managers, or Notary.

Pursuant to SEBI's letter dated June 19, 2009 addressed to AMFI; and subsequent guidelines issued by AMFI in this regard, Systematic Investment Plans up to Rs.50,000/- per year per investor i.e. aggregate of investments in a rolling 12 months period or in a financial year (hereinafter referred to as 'Micro SIP') shall be exempt from requirement of PAN. This exemption shall be applicable only to investments by individual (including NRI but not PIOs), minors and sole proprietary firms. HUF and other category of investors are not eligible for this exemption. Please refer addendum No.9/2009 dated January 19, 2009 under Press release Section on our website www.principalindia.com, for list of photo identification documents that can be submitted along with Micro SIP applications as proof of identification in lieu of PAN.

Know Your Customer Requirement

It is mandatory for all applications for subscription of value of Rs.50,000/- and above to quote the KYC Compliance Status of each applicant (guardian in case of minor, POA holder and issuer) in the application for subscription and attach proof of KYC Compliance viz. KYC Acknowledgement Letter / Printout of KYC Compliance Status downloaded from CVL website (www.cvlindia.com) using the PAN.

As a token of having verified the identity and address of the investor(s) and for efficient retrieval of records, the Central Agency will issue a KYC Acknowledgement Letter (KYC Letter) to each investor who submits an application and the prescribed documents to the Central Agency.

Investors who wish to obtain a KYC Acknowledgement Letter have to submit a completed Application Form for Know Your Customer ('KYC Form') along with all the prescribed documents listed in the KYC Form, at any of the Point of Service ('POS'). The KYC Form can be downloaded from www.principalindia.com or www.amfiindia.com.

Applications for subscriptions of value of Rs.50,000/- and above without a valid KYC compliance may be rejected. Further, where it is not possible to verify the KYC compliance status of the investor at the time of allotment of units, the Trustee / AMC shall verify the KYC compliance status of the investor within a reasonable time after the allotment of units. In the event of non compliance of KYC requirements, Trustee / AMC reserves the right to freeze the folio of the investor(s) and affect mandatory redemption of unit holdings of the investors at the applicable NAV, subject to payment of exit load, if any.

If you wish to know more about the KYC formalities/procedure, you can just walk into our nearest Investor Service Centre or call our toll free number 1800 22 5600 for any help and guidance. Alternatively you can email us your query at customer@principalindia.com. You may also visit our website at www.principalindia.com for more details.