For continuous and easy transactions in the securities market, capital markets regulator Sebi has advised investors to link their PAN with their Aadhaar number by September 30. If a person fails to comply, their Permanent Account Number (PAN) card will become inactive, implying that their Know Your Customer (KYC) information will be incomplete.
The move arose after the Central Board of Direct Taxes issued a notification in February 2020 stating that if a person’s PAN is not linked with Aadhaar by September 30, 2021, or any other date set by the CBDT, it will become inoperative. Due to the fact that PAN is the sole identification number for all securities market transactions, all Sebi registered entities, including market Infrastructure Institutions, should ensure compliance with the notification and accept only operative PAN (linked with Aadhaar number) from clients when opening new accounts after September 30.
Existing investors have also been asked to ensure that their PAN is linked to their Aadhaar number by September 30 in order to ensure continuous and smooth transactions in the securities market and to avoid any consequences of non-compliance with the notification on their securities market transactions.