Investors can now invest up to Rs 50,000 annually in a single mutual fund per year without a permanent account number (PAN).

SEBI has decided to exempt the requirement of permanent account number (PAN) for investments (both lump sum and SIPs) up to Rs 50,000 per mutual fund, per year. Now, instead of PAN, investors can submit their voter identity card, passport or driving license for photo identification. The rule is applicable with immediate effect.

Earlier, investors were allowed to invest up to a ceiling of Rs 50,000 across all AMCs. Now technically you can invest Rs 50,000 in each AMC. There are separate set of KYC guidelines for this rule. These investments are now
exempt from PAN. KYC is mandatory even now. However, small ticket size investors can invest without a PAN by submitting either their passport or driving license as a proof to comply with KYC.