Link PAN to Aadhaar by March 31: Sebi Solicits Investors
Sebi, the capital markets regulator, has today asked all investors to link their PAN to the Aadhaar number before March 31 for continuous and smooth transactions in the securities market.
“All existing investors are required to ensure that their PAN is linked to the Aadhaar number. before March 31, 2023, for continuous and smooth transactions in the securities market and to avoid the consequences of non-compliance with said CBDT circular, as such accounts are considered non-KYC compliant and restrictions may apply to securities and other transactions until the PAN and Aadhaar are linked,” Sebi said in a press release.
The provisions of the Income Tax Act, 1961 require any person who is assigned a Permanent Account Number (PAN) to report his/her Aadhaar Number to the prescribed authority so that the Aadhaar and PAN can be linked. This must be done on or before the announced date, on which date the PAN will be inactivated.
According to Circular No. 7 of 2022 of the Central Board of Direct Taxes (CBDT) dated March 30, 2022, the PAN assigned to a person will be inactivated if it is not linked to Aadhaar on March 31, 2023 and will be liable for all consequences under the Income-tax Act, 1961 for failure to provide, suggest or quote the PAN.
PAN is the key identification number
Since PAN is the main identifier that is part of the KYC requirements for all transactions in the Securities Market, SEB Registered Entities and Market
Infrastructure Institutions (Mills) are required to ensure valid KYC for all participants.
The Central Board of Direct Taxes (CBDT) issued a circular in March 2022, whereby the PAN assigned to an individual would be rendered inoperative if not linked to Aadhaar by March 31, 2023, and would be liable for all consequences under income tax. Tax Act, 1961, for failure to provide, suggest or quote the PAN.
Meanwhile, in another development, capital markets regulator Sebi on Tuesday extended the time until the end of March to file applications for the appointment of forensic auditors for mutual funds, asset management companies (AMCs) and trustee entities.
Previously, the interested entities had to submit applications before March 6.
“It has been decided to extend the application deadline and the revised application submission date is March 31, 2023,” the capital markets regulator said in a public notice.
On February 11, the Securities and Exchange Board of India (Sebi) had filed applications from eligible companies for the appointment of forensic auditors for MFs, their AMCs and trustee companies.
After being appointed, the auditors would take on assignments related to forensic audit of mutual funds, their AMCs and trustee companies or board of trustees.