India’s Securities Regulator Asks Investors in India to Link PAN with Aadhaar by March 31, 2023
The Securities and Exchange Board of India has asked all investors to link their Permanent Account Number (PAN) with Aadhaar or face deactivation.
For continuous and seamless transactions in the securities and capital markets, the Securities and Exchange Board of India (SEBI) has urged that all investors in India link their Permanent Account Number (PAN) with Aadhaar numbers by March 31, 2023.
According to the announcement by SEBI on March 8, 2023, failure to comply with this linking requirement would be deemed non-KYC compliant, and restrictions on securities and other transactions would be put in place until the PAN and Aadhaar are linked.
All SEBI registered firms and Market Infrastructure Institutions (Mlls) must guarantee that they have a valid KYC. In India, PAN is the essential identifying number for tax and financial monitoring purposes and a key KYC criteria for all transactions in the securities market.
Last year in March, the Central Board of Direct Taxes (CBDT) had issued a circular that stated that the PAN assigned to a person would expire if it was not linked with Aadhaar by March 31, 2023, and that person would be subject to all penalties under the Income-Tax Act of 1961 for failing to provide, notify, or cite the PAN.
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