Mandatory requirement of Permanent Account Number (PAN) – Issues and clarifications (III)
Summary
SEBI withdraws the facility for NRIs, PIOs, and foreign nationals to open limited purpose BO or trading accounts without a Permanent Account Number (PAN). Existing accounts opened without PAN must comply with mandatory PAN requirements by December 31, 2006, or face being made inoperable. Depositories and Stock Exchanges are directed to implement these changes immediately through regulatory amendments and dissemination of information.
Text
it has been decided to withdraw the facility of opening a “limited purpose BO account”/trading account by them without PAN.
the NRIs/PIOs who have already opened such BO accounts/trading accounts without PAN shall be required to comply with the mandatory requirement of PAN on or before December 31, 2006, failing which such accounts shall be made inoperable by the Depository/Depository Participant/Broker.
Bring the provisions of this circular to the notice of the DPs of the Depositories and also to disseminate the same on the website;
Include the aforesaid clarifications, as applicable, in the advertisement campaigns released by them from time to time for better understanding of the investors;
Make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary;
Communicate to SEBI the status of the implementation of the provisions of this circular in the Monthly Development Report.
Make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately;
Bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website;
Communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report.
This circular is being issued in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 to protect the interest 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) – Issues and clarifications (III). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.