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SEBI Asks To Link Investor's Demat And PAN With UCC


SEBI In order to prevent the misuse and diversion of investors' securities, brokers have been asked to link an investor's PAN and demat account with the unique client code. Additionally, the stock market regulator has set up a mechanism for depositories as well as bourses for mapping the UCC with the demat account.

SEBI Asks To Link Investor's Demat And PAN With UCC

Also, the move is aimed at ease in reconciliation "Stock exchanges and depositories shall map the existing UCCs with the demat account of the clients latest by December 31, 2019," the watchdog said in a circular on Friday. Furthermore, it is part of the Early Warning Mechanism that was established for finding diversion of securities of clients to other non-client accounts by brokers such that preventive measures can be taken accordingly.

As per the SEBI regulations, the data pertaining to unique client code needs to be shared with the depositories on a one-time basis by November 30, 2019 and then the incremental data in respect of new UCCs shall be shared on a daily basis. "UCC allotted by the trading member (TM) to the client shall be mapped with the demat account of the client. A client may trade through multiple TMs in which case each such UCC shall be mapped with one or more demat account(s)," SEBI said.

Also, there has been put a directive to weed out inactive, non-operational UCCs such that there is no misuse during the process of mapping clients' UCC with their demat account.

Story first published: Saturday, November 16, 2019, 15:20 [IST]
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