Sep 26, 2006
PR No.:
219/2006
PRESS RELEASE
PR-219/2006
Mandatory requirement of Permanent Account Number (PAN) – Clarifications and extension of deadline to December 31, 2006
1. Pursuant to the meeting held with depositories on January 18, 2006 and circular dated July 13, 2006, PAN has been made mandatory for operating the Beneficiary Owner (BO) accounts in the depository system and for trading in the cash market, with effect from October 1, 2006. In order to facilitate the process of implementation of this mandatory requirement, SEBI had issued clarifications to the depositories vide circular dated July 20, 2006.
2. Subsequent to the issue of above referred circulars, investors and market participants have made further representations and suggestions and sought clarifications on the various issues from SEBI.
3. Upon careful consideration of the representations and discussions with the market participants, in order to enable the investors at large to be PAN compliant and to mitigate any undue hardship in the process of transition, SEBI has issued a
circular No.13/2006 dated September 26, 2006 to the stock exchanges, depositories and custodians offering the following clarifications:
3.1 The present deadline of September 30, 2006, for complying with the mandatory PAN requirement has been extended to December 31, 2006, as a one time measure.
3.2 The custodians are advised to verify the PAN details of the institutional clients with the original PAN card and provide copy of such verified PAN details to the brokers duly certified.
3.3 The clarifications as contained in Paras 4.2 to 4.9 of the SEBI Circular No. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 are also applicable to trading in the cash market. The clarifications contained in Para 4.1 of the SEBI Circular No. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 stands withdrawn.
4. The circular No.13 dated September 26, 2006 is available on the SEBI website: www.sebi.gov.in
Mumbai
September 26, 2006