Amendments to provisions in SEBI Circular dated September 16, 2016 on Unique Client Code (UCC) and mandatory requirement of Permanent Account Number (PAN)
Summary
SEBI amends its 2016 circular to mandate the use of e-PAN for verifying client identities in commodity derivatives trading. Members must verify e-PAN authenticity via the Income Tax Department website and maintain soft copies in their records. These modifications aim to rationalize compliance requirements by leveraging the instant PAN facility launched in the Union Budget 2020.
Text
It shall be mandatory for the members of the exchanges having commodity derivatives segment to use Unique Client Code (UCC) for all clients transacting on the commodity derivative segment... members shall collect after verifying the authenticity and maintain in their back office the copies of Permanent Account Number (PAN)... However, in case of e-PAN, members shall verify the authenticity of e-PAN with the details on the website of IT Department and maintain the soft copy of PAN in their records.
The exchanges having commodity derivatives segment shall ensure that the members of their exchanges shall: i. collect copies of PAN cards... ii. cross-check the aforesaid details... with the details on the website of the Income Tax (IT) Department. However, in case of e-PAN, verify the authenticity of e-PAN with the details on the website of IT Department and maintain the soft copy of PAN in their records. iii. upload details of PAN or e-PAN so collected to the Exchanges as part of Unique Client code. iv. verify the documents with respect to the unique code and retain a copy of the document.
The provisions of this circular shall come into effect from April 1, 2021. All other provisions in the circular dated September 16, 2016 shall continue to remain in force.
This Circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
The Exchanges with commodity derivatives segment are advised to: 6.1 to make necessary amendments to the relevant bye-laws, rules and regulations; 6.2 bring the provisions of this circular to the notice of the stock brokers/members of the Exchange and also to disseminate the same on their website; and 6.3 communicate to SEBI, the status of the implementation of the provisions of this circular.
Source: SecMarx — Amendments to provisions in SEBI Circular dated September 16, 2016 on Unique Client Code (UCC) and mandatory requirement of Permanent Account Number (PAN). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.