India’s capital market forum Association of National Exchanges Members of India (ANMI) has urged the Securities and Exchange Board of India (Sebi) not to suspend accounts for not linking PAN with Aadhar and extend the timelines in the interest industry and investors.
The Central Board of Direct Taxes (CBDT) had issued a notification on 17 September saying that if the PAN and Aadhaar of individuals are not linked by 31 March 2022, the PAN of such persons shall become inoperative immediately.
ANMI said if the PAN becomes inoperative, 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.
"In view of the above, considering that there is a huge impact of the 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.," ANMI said in a letter.
"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.