MANDATORY REQUIREMENT OF PAN – ISSUES AND CLARIFICATIONS

• This is further to SEBI Circular No. MRD/DoP/SE/Cir-8/2006 dated July 13, 2006 making, inter-alia, PAN mandatory for trading in the cash market with effect from October 1, 2006. Similarly Demat account holders were to mandatorily obtain PAN, even if they are non resident. The demat accounts of non compliant account holders were to be frozen by 30th of September 2006.
• Subsequent to the issue of above referred SEBI Circulars, market participants have made further representations and suggestions and sought clarifications on the various issues from SEBI. 
• The present deadline of September 30, 2006 has been extended to December 31, 2006, as a one time measure.