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TMI BlogMandatory requirement of Permanent Account Number (PAN) – Issues and clarificationsX X X X Extracts X X X X X X X X Extracts X X X X ..... r Account (BO) in the depository system. 2. Subsequent to the issue of above-referred SEBI Circulars, market participants have made further representations and suggestions and sought clarifications on the various issues from SEBI. 3. The further representations made and clarifications sought covered mainly the following aspects: 3.1. Exemption from the requirement of verification with the original PAN Card in respect of the institutional clients. Some of the brokers have expressed difficulty in verifying the PAN of institutional clients with the original PAN card as they are dealing through the custodians and not directly with their clients. 3.2. Some of the Investors have represented to SEBI seeking exemption for the joint account hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Public Financial Institution as defined under section 4A of the Companies Act, 1956. 4.2. In the light of the practical difficulties expressed by various market participants as detailed above in adhering to the present deadline of September 30, 2006, the present deadline has been extended to December 31, 2006, as a one time measure. 4.3. The clarification contained in para 4.1 of the SEBI Circular No. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 providing a grace period of 30 days to the entities registered with SEBI u/s 12 of the SEBI Act, 1992 stands withdrawn. 4.4. The clarifications as contained in Paras 4.2 to 4.9 of the SEBI Circular No. MRD/DoP/Dep/Cir-09/06 dated July 20, 2006 are also applicable to trading in the cash market. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Annexure I GENERAL MANAGER MARKET REGULATION DEPARTMENT MRD/DoP/Dep/Cir-09/06 July 20, 2006 The Chairman & Managing Director National Securities Depository Ltd. Trade World, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013 The Managing Director & CEO Central Depository Services (India) Ltd. Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai 400 023 Dear Sirs, Sub: Mandatory requirement of Permanent Account Number (PAN) - Issues and clarifications 1. This has reference to NSDL Circular No. NSDL/POLICY/2006/0007 dated March 03, 2006 and CDSL Communiqué No. CDSL/OPS/ DP/657 as well as CDSL/OPS/DP/666 dated February 07, 2006 and March 08, 2006, respectively, on the captioned subject. 2. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to submit the PAN card to the Depository Participants (DPs) within a period of 30 days from the date of opening of the BO account for verification, failing which the DPs shall freeze such accounts as "Suspended for Debit" till such time the PAN card is produced for verification. 4.2. As regards proof of address of FIIs/sub-accounts, a copy of the Power of Attorney (POA) given by the FIIs/FII sub-accounts to the Custodians (which are duly notarized and/or apostiled or consularised) that gives the registered address of the FIIs/sub-accounts can be accepted as proof of address. 4.3. The NRIs/PIOs would be required to comply with the mandatory requirement of producing PAN Card at the time of opening a BO account. However, such NRIs/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted to open BO Accounts subject to producing the PAN allotment letter. However, such investors would be required to produce the PAN Card on or before September 30, 2006 failing which the DPs shall freeze such accounts as "Suspended for Debit" till PAN card is produced for verification. 4.6. In case of HUF, Association of Persons (AoP), Partnership Firm, Unregistered Trust, etc. -- though the BO account would be in the name of natural persons, PAN of the respective HUF, AoP, Partnership Firm, Unregistered Trust, etc shall be obtained. 4.7. As regards Registered Trust, Corporate Bodies and minors, PAN of the respective entities shall be obtained when accounts are opened in their respective names. 4.8. In case where there is di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ress (POA) is collected for all the account holders as is being done in the case of Proof of Identity (POI).
5.5. Make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary;
5.6. Communicate to SEBI the status of the implementation of the provisions of this circular in the Monthly Development Report for the month of August, 2006.
6. 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.
Yours faithfully
V. S. SUNDARESAN X X X X Extracts X X X X X X X X Extracts X X X X
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