SEBI on Friday has asked investors to link their Aadhaar, the UIDAI issued widely used ID with PAN by September 30, 2021. Non-compliance with the directive will render PAN inoperation, which hence will mean incomplete KYC and therefore one will not be able to carry out stock market transactions.
The directive by the market regulator follows the CBDT ruling dated February 13, 2020 that required every individual to link up their PAN and aadhaar by September 30, 2021.The mandate has been issued for all those who have been allotted PAN as on July 1, 2017.
Since PAN is the sole identification number for all transactions in the securities market, in view of the said CBDT notification, all SEBI registered entities including market Infrastructure Institutions (MIIs) should ensure compliance with the said notification and accept only operative PAN (i.e., linked with Aadhaar number) by the client while opening new accounts post-September 30, 2021 or any other date specified by CBDT, it further added.
The guideline is to ascertain smooth transactions in the securities market and for avoiding any consequence of non-compliance of said notifications on their transactions in the capital market.