Upon careful consideration of the representations and discussions with the market participants, the SEBI has decided to give some concession for mandatory requirement of PAN Cards for trading in secondary market. The clarifications regarding these are as under:
- All entities registered with SEBI, may open a Beneficiary Owner (BO) account without producing the PAN card. However, such entities would be required to submit the PAN card to the Depository Participants (DPs) within 30 days from the date of opening of such for verification, failing which the DPs shall freeze such accounts as “Suspended for Debit” till it is produced for verification.
- Any investor who has PAN but not having the PAN card may be permitted to open BO Accounts subject to producing the PAN allotment letter. The card has to be produced within 30 days.
- A copy of the Power of Attorney given by the FIIs/FII sub-accounts to the Custodians (which are duly notarized and/or a postiled or consularised) can be accepted as proof of address.
- The NRIs/PIOs may be permitted to open a “limited purpose BO account” without PAN. The operation of such BO accounts shall be subject to the following conditions :
- The account holders shall be permitted to sell the securities lying in these accounts only through a registered broker on the stock exchange.
- These accounts will be “suspended for credit”.
- It can remain operational only for a limited period of 6 months from the date of opening of the account.If the Account holder fails to produce the PAN card within the stipulated time, the DPs shall freeze such BO accounts.
- 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.