PIO proof

This time around when persons of Indian origin (PIO) come back to celebrate Pravasi Divas, there’s bound to be heartburn about the mutual fund investment number (MIN). Until recently, most mutual fund investments required only two status categories to be disclosed — resident and non-resident. An investor writes to say that under the heading ‘nationality’, those who check on PIO have to attach a copy of their PIO card. Since the MIN rules were suddenly sprung on investors, they would have to rush to get PIO cards, or have their investments locked up. However, NRIs and PIOs can get MIN from wherever they are located. They will get one only on mailing the form along with certified copies of backing documents to a MIN agent in India. This means all investments will be locked up and new investments can’t be made until these requirements are met.

Tracking netas & babus

Anil Deshpande, a mutual fund investor, has a question about the MIN application form. He says, “It is amusing to note in Section C2 B of the form, under additional information, an investor is asked to identify if (s)he is a civil servant, bureaucrat, politician, current or former MP, MLA, MLC or current or former Head of State. One can think of only two reasons why this information is asked for: either this group is meant to get a preferential treatment under the Prevention of Money Laundering Act, 2002...or they are particularly suspect under it. Which one is it?"