Capital market regulator SEBI has reminded investors to link their permanent account number (PAN) with Aadhaar number before September 30 to continue smooth transactions in the securities market.
In a circular, the regulator has also directed entities incuding exchanges to ensure accept only operative PAN (those linked with Aadhaar number) by the client while opening new accounts post September 30, 2021.
The directive comes on the back of the notification of Central Board of Direct Taxes (CBDT) issued in February, which said that the Permanent Account Number (PAN) of a person allotted as on July 1, 2017 shall become inoperative if it is not linked with Aadhaar by September 30, 2021 or any other date specified by the CBDT.
"All the existing investors are advised to ensure linking of their PAN with Aadhaar number prior to September 30, 2021 or any other date specified by CBDT for continual and smooth transactions in securities market and to avoid any consequences of non-compliance of said notification on their transactions in securities market," it said.
As per Section 139AA of the Income Tax Act, 1961, every person who has a PAN, and is eligible to an obtain Aadhaar number, is required to the link the two identification documents.