The Securities and Exchange Board of India (SEBI) has requested that all registered organisations, market infrastructure institutions, and investors make sure that all participants have proper KYC by March 31, the deadline for the requirement to link PAN with Aadhaar.
“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.
Link Aadahar and PAN before March 31
“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 provisions of the Income-tax Act, 1961, make it mandatory for everyone who has a PAN to link Aadhaar Number to the PAN card, “This is required to be done on or before the notified date, failing which the PAN shall become inoperative,” SEBI said.
According to a CBDT circular dated March 30, 2022, the PAN assigned to a person will expire if it is not linked with Aadhaar by March 31, 2023, and the person will be responsible for all Income-Tax Act of 1961 repercussions for failing to provide, notify, or quote the PAN.
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