In July 2021, Sebi asked all existing eligible trading and demat account holders to provide the details of nomination.
It is mandatory for all demat and trading account holders to register a nominee. If not done yet, there are chances that your Demat account could be frozen starting April 1, 2023.
The initial deadline to add a nominee was March 31, 2022, but Securities and Exchange Board of India (SEBI), had extended the date by a year after representations and feedback from various stakeholders.
Read More: RBI allows banks from UK, 17 other countries to open Vostro accounts for rupee trade
In July 2021, Sebi asked all existing eligible trading and demat account holders to provide the details of nomination.
Recently, the capital markets regulator also asked all investors to link their PAN with Aadhaar number by March-end for continual and smooth transactions in the securities market.
The non-compliance with this would be considered non-KYC compliant, and there could be restrictions on securities and other transactions until the PAN and Aadhaar are linked, Sebi said.
“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.
“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 the securities market and to avoid consequences of non-compliance with the said CBDT circular,” the Sebi said.
Read More: Indian startups withdraw up to $300 million from Silicon Valley Bank
The provisions of the Income-tax Act make it mandatory for every person who has been allotted a PAN to intimate his/her Aadhaar number to the prescribed authority so that the Aadhaar and PAN can be linked. This is required to be done on or before the notified date, failing which the PAN would become inoperative.
The Central Board of Direct Taxes (CBDT) issued a circular in March 2022, whereby the PAN allotted to a person would become inoperative if it is not linked with Aadhaar by March 31, 2023, and would be liable to all the consequences under the Income-tax Act, 1961, for not furnishing, intimating or quoting the PAN.
