Link PAN With Aadhaar, Sebi Asks InvestorsThe provisions of Income-tax Act, 1961, make it mandatory for every person who has been allotted a Permanent Account Number (PAN) to intimate his/her Aadhaar Number to the prescribed authority so that the Aadhaar and PAN can be linked

Capital markets regulator Sebi on Wednesday asked all the investors to link their PAN with Aadhaar number by March-end for continual and smooth transactions in the securities market, according to a PTI report.

"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 securities market and to avoid consequences of non-compliance with the said CBDT circular, as such accounts would be considered non-KYC compliant, and there could be restrictions on securities and other transactions until the PAN and Aadhaar are linked," said Sebi in a statement.

According to the report, last year, in March, the Central Board of Direct Taxes (CBDT) issued a circular stating that the PAN issued to a person would become out of service, if it is not linked with Aadhaar by March 31, 2023, and would be accountable to all the consequences under the Income-tax Act, 1961, for not furnishing, intimating or quoting the PAN. Also, the provisions of Income-tax Act, 1961, make it mandatory for every person who has been allotted a Permanent Account Number (PAN) to intimate his/her Aadhaar Number to the prescribed authority so that the Aadhaar and PAN can be linked. This is reportedly required to be done on or before the notified date, failing which the PAN shall become inoperative.

"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," said Sebi.