With the deadline to link the permanent account number (PAN) with Aadhaar almost nearing its end, an industry body representing domestic brokerages has requested the market regulator for another extension of three months.
According to brokers and mutual fund transfer agents, millions of demat accounts as well as mutual fund (MF) folios are yet to link their PAN and Aadhaar.
The Securities and Exchange Board of India (Sebi) has warned operations in all such accounts will be suspended. The warning comes after extensions in the deadline. From April 1, 2022, accounts where Pan-Aadhaar seeding has not taken place will not be able to carry out any transaction. Further, such accounts could also track penalties under the Income-Tax Act.
The Association of National Exchange Members of India (Amni) has cited technical glitches at market infrastructure institutions (MIIs) for the extension.
The lobby group has said Pan-Aadhaar seeding for several investors has been done erroneously. The data has been correctly captured by one exchange, while another exchange shows the status as ‘not seeded’ for the same accounts, it said. “This will lead to a lot of confusion as a large number of investors will be wrongly blocked due to this an error by one of the exchanges,” it has said in a letter. Anmi has said an extension will help reconcile all the data and benefit lakhs of investors.
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