With the March 31 deadline for mandatory linking of Permanent Account Number (PAN) with Aadhaar approaching, the Securities & Exchange Board of India (SEBI) has asked all registered entities, market infrastructure institutions and investors to ensure valid KYC for all participants.
“Since PAN is the key identification number and part of KYC requirements for all transactions in the securities market, all SEBI registered entities and Market Infrastructure Institutions (MIIs) are required to ensure valid KYC for all participants,” SEBI said in a statement.
“All existing investors are required to ensure linking of their PAN with Aadhaar number prior to March 31 for continual and smooth transactions in securities market and to avoid consequences of non-compliance with the Central Board of Direct Taxes (CBDT) circular, as such accounts would be considered non-KYC compliant, and there could be restrictions on securities and other transactions until the PAN and Aadhaar are linked,” SEBI added.
The market regulator said that the provisions of Income-tax Act, 1961, make it mandatory for every person who has been allotted a PAN to intimate his/her Aadhaar Number to the prescribed authority so that the Aadhaar and PAN can be linked. “This is required to be done on or before the notified date, failing which the PAN shall become inoperative,” SEBI said.
As per a CBDT circular dated March 30, 2022, the PAN allotted to a person shall become inoperative if it is not linked with Aadhaar by March 31, 2023, and the person shall be liable to all the consequences under the Income-tax Act, 1961, for not furnishing, intimating or quoting the PAN.
