The MIN system requires the submission of four documents — photo, photo identity, age and address proof and does not mandate personal attendance. According to Kurien, even the collection of personal financial information has been restricted to ticking on check boxes. While the MIN will be issued across the counter on submission of documents, there will be a one-time process when the data is sent for a second verification and entry into CVL’s database. This would take around four days, although CVL has reserved the right to seek corrections for 21 days.

In this context, some investors seem to be under the mistaken impression that “CVL will take four days to confirm MIN numbers in case of every transaction” causing investments to be locked-in for that period. AMFI is emphatic that there will be no recurring delay, since databases of Mutual funds and CVL are linked to ensure instant verification.

Once issued, Kurien says, the MIN will be useful in several other ways. For instance, investors wanting to change their postal address, can do so through the POS agents authorised to issue MIN, without having to write to every mutual fund in which they are invested. Over time, MIN numbers could provide the first accurate information on India’s investor population, since it is issued to individuals. For instance the mutual fund industry has 2.56 crore folios, but the number of investors is bound to be significantly smaller.

AMFI has started out by mandating MIN for transactions above Rs 50,000. This will soon be extended to all transactions and investors would be foolish to follow the advice of some newspapers to split their investments to avoid MIN. It makes far better sense to get it over with.

... contd.