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SEBI New KYC Rules 2026: ‘KYC Validated’ Status Mandatory for Mutual Fund Investment

Vikram Singh
By Vikram Singh
3 min read
Published: 27 Feb 2026
SEBI New KYC Rules 2026: ‘KYC Validated’ Status Mandatory for Mutual Fund Investment
SIP Online Registration 2026: If you’re planning to start your first mutual fund SIP in the new year 2026, there’s good news for you. Now, there’s no need for paperwork or bank visits. Under SEBI’s new and simplified digital regulations, you can now start investing by completing 100% paperless KYC from your smartphone. To promote ‘Ease of Investment’ in 2026, the government has made video-KYC and Aadhaar-based e-KYC even more secure and faster. In this article, we’ll explain step-by-step how to activate your first SIP with ‘KYC Validated’ status.

KYC Validated Status

According to SEBI’s latest regulations, there are now three main KYC levels: Validated, Registered, and On-Hold. To be able to invest with any mutual fund house (AMC) without any hassles, your status must be ‘Validated’.
SIP Investment
To obtain ‘Validated’ status, you must complete your KYC using Aadhaar and PAN. If you previously completed your KYC using your driver’s license or voter ID, you will now need to update it with Aadhaar. In 2026, only ‘KYC Validated’ investors will be able to invest in new schemes and withdraw their funds without any restrictions.

How to start an online SIP

Starting a new SIP is now as easy as ordering food online. Just follow the steps below:
  1. Go to any trusted mutual fund app or AMC’s website.
  2. Enter your PAN number. If you haven’t already completed your KYC, select the ‘Digital KYC’ option.
  3. Here, you’ll need to enter your Aadhaar number and verify it with the OTP received on your registered mobile number.
  4. For security, you’ll need to record a short video or upload a live selfie. This ensures you’re the one making the investment.
  5. Enter your bank account number and IFSC code. Then, set up an e-mandate using ‘e-NACH’ or ‘UPI Autopay.’ This will automatically deduct your SIP amount on the specified date every month.
  6. Select your preferred fund (such as an index fund or mid-cap fund), set your monthly amount, and pay the first installment.

Documents Required for Safe Investments

Before embarking on your digital journey, have these things ready to ensure your application is not rejected:
SIP Investment Plan
SIP Investment Plan
  • PAN Card
  • Aadhaar Card
  • Cancelled Check or Bank Passbook
  • Mobile Number Linked to Aadhaar

New SEBI Rules (2026)

SEBI has proposed ‘Uniform KYC’ in 2026. This means that once KYC is complete, that data will be shared across all financial intermediaries. You will no longer need to complete KYC separately for each new broker or fund house. Furthermore, it is now mandatory to update KYC records every five years to ensure complete accuracy and security.
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