Master Circular for Depositories

CIR/MRD/DP/13/2013 · 2013-04-15 · SEBI

Summary

This section of the SEBI Master Circular establishes Permanent Account Number (PAN) as the sole identification number for all securities market transactions. It mandates intermediaries to implement systems linking client databases to PAN details and maintain verified copies of PAN cards. The text further lists specific documents admissible as Proof of Identity, including Aadhaar, passports, and government-issued identity cards. This section outlines the acceptable documents for Proof of Address and mandates Depository Participants to verify these documents with originals. It permits third-party correspondence addresses subject to KYC norms, while exempting Portfolio Management Services clients from this specific provision. Additionally, it details exemptions from mandatory PAN requirements for government entities, Sikkim residents, UN agencies, and institutional clients. This section mandates specific documentation for Beneficial Owner name changes and requires Depository Participants to verify and retain these records. It prohibits various charges related to account opening, custody, credit of securities, and closure, while establishing rules for refunds of upfront maintenance fee

Text

Permanent Account Number (PAN) to be the sole identification number for all transactions in the securities market

Put necessary systems in place so that the databases of the clients and their transactions are linked to the PAN details of the client

Build necessary infrastructure to enable accessibility and query based on PAN thereby enabling retrieval of all the details of the clients

Collect copies of PAN cards issued to the existing as well as new clients by the Income Tax Department and maintain the same in their record after verifying with the original

Cross-check the aforesaid details collected from their clients with the details on the website of the Income Tax Department

Unique Identification Number (UID) (Aadhaar)/ Passport/ Voter ID card/ Driving license

PAN card with photograph

Identity card/ document with applicant’s Photo, issued by any of the following: Central/State Government and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Colleges affiliated to Universities, Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and Credit cards/Debit cards issued by Banks

List of documents admissible as Proof of Address includes Passport, utility bills not more than 3 months old, bank statements, self-declaration by judges, and proof issued by specified authorities or identity cards from government bodies.

DP shall ensure that all documents pertaining to proof of identity and proof of address are collected from all the account holders. DPs must verify the copy of the aforementioned documents with the original before accepting the same as valid.

While opening a BO Account, DPs shall exercise due diligence while establishing the identity of the person to ensure the safety and integrity of the depository system.

SEBI has no objection to a BO authorizing the capture of an address of a third party as a correspondence address, provided that the Depository Participant (DP) ensures that all prescribed ‘Know Your Client’ norms are fulfilled for the third party also.

Source: SecMarx — Master Circular for Depositories. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.