SEBI mandates linking of PAN with Aadhaar by 31st March, 2023
The Securities and Exchange Board of India (“SEBI”) in sync with the provisions of the Income Tax Act, 1961 and the Central Board of Indirect Taxes (“CBDT”) circular dated 30th March, 2022, has directed all existing investors to ensure linking of their Permanent Account Number (“PAN”) with the Aadhaar Number before 31st March, 2023.
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.
Violation would lead to non-compliance with the said CBDT circular, and 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.
Source: Securities and Exchange Board of India
