Markets regulator Securities and Exchange Board of India (Sebi) on March 8 asked all investors to link their PAN with Aadhaar number by March-end for continual and smooth transactions in the securities market. The non-compliance with this would be considered non-KYC compliant, and there could be restrictions on securities and other transactions until the PAN and Aadhaar are linked, the regulator said.
The CBDT issued a circular in March 2022, whereby the PAN allotted to a person would become inoperative if it is not linked with Aadhaar by March 31, 2023, and would be liable to all the consequences under the Income-tax Act, 1961. "Since PAN is the key identification number and part of KYC requirements for all transactions in the securities market, all Sebi registered entities and Market Infrastructure Institutions (MIIs) are required to ensure valid KYC for all participants. "All existing investors are required to ensure linking of their PAN with Aadhaar number prior to March 31, 2023, for continual and smooth transactions in the securities market and to avoid consequences of non-compliance with the said CBDT circular," the Sebi said.
The provisions of the Income-tax Act make it mandatory for every person who has been allotted a PAN to intimate his/her Aadhaar number to the prescribed authority so that the Aadhaar and PAN can be linked.
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