The government is adding Aadhaar mandatory for many services. Newest to the list is linking Aadhaar with your demat account. The new move is a part of the plan to track all financial transactions in the country.
December is the deadline for linking Aadhaar with e-KYC for trading accounts. All demat account holders are required to link their accounts with Aadhaar by December 31, 2017. Now many trading platforms in India are started sending messages to its dmat account users requesting to link Aadhaar number with the trading account. Bombay Stock Exchange (BSE) issued a circular few months back, ordering all demat account holders to link their accounts with Aadhaar on or before December 31, 2017.
Clients who have opened trading accounts after June 1, 2017, have been given six months to submit details.
If you failed to submit the documents within the prescribed time limit, the dmat account would be suspended till the Aadhaar details are submitted by the client. The major objectives of seeding Aadhaar to trading account is to curb money laundering and tax evasion through stock markets.
As per rules, it is compulsory to have PAN while opening a trading account. The PAN would continue to be another key identity proof. PAN card would be required for online trading on stock or commodity exchanges. How To Check Your Aadhaar-Mobile Number Linking Status?
Stock exchanges have asked brokers to furnish Aadhaar details for all their existing clients before the end of this year. Brokers have asked for more time for compliance. Reminder: Know These Five Aadhaar Linking Deadline
Aadhaar-bank account linking
For the prevention of money laundering norms, banks have already sought Aadhaar details from their customers. The government has asked all public sector and private sector banks to link Aadhaar with bank accounts to make them KYC (know your customer) compliant. December 31 is the last date to link Aadhaar card with PAN card. In telecom sector also the Department of Telecommunication made it mandatory for all telecom subscribers to re-verify existing customers through the Aadhaar-based E-KYC process.