Mandatory requirement of Permanent Account Number (PAN)
Summary
SEBI mandates that demat accounts lacking verified Permanent Account Number (PAN) details be suspended for credit transactions effective August 16, 2010. This suspension excludes credits arising from automatic corporate actions but prohibits other credits such as those from IPOs or secondary market transactions. Depositories are instructed to amend their bye-laws and ensure compliance by Disseminating this requirement to Depository Participants and Beneficial Owners.
Text
with effect from August 16, 2010 such PAN non-compliant demat accounts shall also be "suspended for credit" other than the credits arising out of automatic corporate actions. It is clarified that other credits including credits from IPO/FPO/Rights issue, off-market transactions or any secondary market transactions shall not be allowed into such accounts.
make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary
bring the provisions of this circular to the notice of their DPs and advising them to also communicate the same to all the Beneficial Owners (BOs)
disseminate the same on the website.
This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market.
Source: SecMarx — Mandatory requirement of Permanent Account Number (PAN). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.