India’s capital market forum Association of National Exchanges Members of India (ANMI) has urged the market regulator to extend the timelines of seeding PAN with Aadhaar in the interest industry and investors
India’s capital market forum Association of National Exchanges Members of India (ANMI) has urged the market regulator to extend the timelines of seeding PAN with Aadhaar in the interest industry and investors.
The Central Board of Direct Taxes (CBDT) had on 17 September issued a notification saying that if the PAN and Aadhaar of individuals are not inked by 31 March 2022, the PAN of such persons shall become inoperative immediately.
In a letter written to the Securities and Exchange Board of India (SEBI), ANMI said that new and existing clients of intermediaries will not be able to place fresh trade or square off existing positions and also their demat accounts will have to be suspended, if the PAN becomes inoperative.
“In view of the above, considering that there is huge impact of suspension of client accounts and a large number of clients across all intermediaries are yet to link their PAN to Aadhaar, ANMI request your good offices to kindly take up the matter further with the relevant authority to extend the timelines in the interest of industry and investors,” the ANMI letter said.
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“Alternatively, to delay the implications of not linking PAN with Aadhar and consequently defer the suspension of accounts for 6 months. We hope our request will be considered favourably,” it further said.
“Please note that the PAN-Aadhaar linking is an ongoing activity and the intermediaries have kept the clients informed on the necessity and importance to complete the linking. However, you would understand that this is a client dependent activity and client is required to independently complete the linking on the Income Tax website,” ANMI further said in its letter to SEBI.
“It is not just investor’s mutual fund investment that will come to a halt, but if you fail to link your PAN and Aadhaar, most of your investment-related activities will be stopped. Fresh investments or redemptions will be prohibited. The previous and ongoing systematic investment plans (SIPs) will also be stopped,” the letter said.
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The Income tax department will also levy a fee of Rs 10,000 if investor fail to link their PAN card and Aadhaar before March 31, 2022.
How to Link you PAN with Aadhaar: Investors can do so by:
1. Clicking on this link – Link Aadhaar, OR
2. Simply sending an SMS to 567678 / 56161 from your registered mobile number.
SMS format – <12-digit Aadhaar number> <10-digit PAN>.
Example: UIDPAN 123456789012 ABCDE1234F
