New Delhi: Enhancing the 'know your client' norms, the Securities and Exchange Board of India has made permanent account number (PAN) mandatory for opening demat accounts on or after April 1, 2006.
For demat accounts opened before April 1, 2006, it is mandatory for the account holders to provide their PAN numbers to the depositories by December 31, 2006. Where PAN is not provided, the demat account would be 'suspended for debit' after December 31, 2006, till it is provided.
Similarly, SEBI has made PAN mandatory for trading in cash segment of exchanges with effect from 1st January 2007. It was already mandatory for trades in the futures and options segment of exchanges.