Permanent Account Number (PAN) to be the sole identification number for all transactions in the securities market
Further, in order to strengthen the Know Your Client (KYC) norms and identify every participant in the securities market with their respective PAN thereby ensuring sound audit trail of all the transactions, it has been decided that PAN would be the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction.
SEBI has issued a circular on 27th April 2007, in this regard advising the intermediaries to put in the necessary systems in place so that all the individual databases of their clients and clients’ transactions are linked to the PAN details of the client. The above shall come into force with effect from July 02, 2007.
The above direction of SEBI is pursuant to the announcement made in the Union Budget 2007-08 to make PAN the sole identification number for all participants in the securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account.
NOTE- SEBI vide circulars dated July 13, 2006 and September 26, 2006 had earlier stipulated that PAN would be mandatory for trading in the cash market with effect from January 01, 2007. Further, SEBI vide circular dated September 26, 2006 had also stipulated that PAN would be mandatory for operating demat accounts with effect from January 01, 2007. These mandates have come into force and have been operationalised.
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