KYC Update: Sebi Asks Investors To Link PAN With Aadhaar By March 31, Check Details

Capital markets regulator Sebi on Wednesday requested all traders to hyperlink their PAN with Aadhaar quantity by March-end for continuous and clean transactions within the securities market.

The non-compliance with this may be thought-about non-KYC compliant, and there could possibly be restrictions on securities and different transactions till the Permanent Account Number (PAN) and Aadhaar are linked, Sebi mentioned in an announcement.

The Central Board of Direct Taxes (CBDT) issued a round in March 2022, whereby the PAN allotted to an individual would turn out to be inoperative if it isn’t linked with Aadhaar by March 31, 2023, and can be liable to all the results beneath the Income-tax Act, 1961, for not furnishing, intimating or quoting the PAN.

Also Read: How To Link PAN And Aadhaar With Penalty Before March 31, 2023?

“Since PAN is the important thing identification quantity and a part of KYC necessities for all transactions within the securities market, all Sebi registered entities and Market Infrastructure Institutions (MIIs) are required to make sure legitimate KYC for all individuals.

“All current traders are required to make sure linking of their PAN with Aadhaar quantity previous to March 31, 2023, for continuous and clean transactions within the securities market and to keep away from penalties of non-compliance with the mentioned CBDT round,” the Securities and Exchange Board of India (Sebi) said.

The provisions of the Income-tax Act 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 would become inoperative.

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