- SEBI has directed all investors to link PAN with Aadhaar numbers by 31st March 2023 for seamless transactions in the securities market.
- SEBI has stated that the deadline for linking PAN with Aadhar Card deadline of 31st March 2023 was given by the Central Board of Direct Taxes (CBDT) vide its circular No. 7 of 2022 dated March 30, 2022 last year. As this deadline is approaching SEBI has directed investors to ensure that their Aadhar card is linked with PAN. SEBI has also highlighted about consequences of not linking PAN with Aadhar card.
- It further needs to be highlighted here that SEBI vide circular SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated 03rd November 2021 at Point 6.1 which denotes compulsory linking of PAN and Aadhaar by all holders of physical securities had stated that time limit provided by CBDT would be the timeline for linking of PAN with Aadhar Card under the circular too. Investors holding securities in physical form need to link PAN with Aadhar Card failing which their folios would be freezed.
- So, investors holding securities in physical form will now be required to comply with this requirement before March 31, 2023 failing which they would attract consequences under SEBI Circular dt: November 3, 2021.
- SEBI has also stated that 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. It also needs to be noted that for investors holding securities in demat account also linking of PAN and Aahdar is mandatory. So it necessary that all investors including investors with demat account shall ensure the linking of PAN with Aadhaar card before the deadline.
- We had by way of our newsletter on upcoming due dates for compliance had stated about compliance with SEBI circular dt: November 3, 2021. Hence it is necessary that investors are educated about this by listed entities.
HOW TO LINK PAN WITH AADHAAR
- Visit https://www.incometax.gov.in/iec/foportal/
- Under the ‘Quick Links’ section, click on the ‘Link Aadhaar’ option
- Next, enter your Aadhaar number and PAN, and pay the late fee of ₹1000/- through the ‘E-Pay Tax functionality’ after following the on-screen instructions
- Once payment is complete, visit the ‘Link Aadhaar’ section again and enter your name, mobile number, Aadhaar number and PAN
- Verify the information by selecting the ‘I agree to validate my Aadhaar Details’ option and Click on ‘Link Aadhaar’ option
Enter the OTP received on your mobile number and click on ‘Validate’ to complete the linking process.
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Disclaimer: This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement