The earlier deadline was September 30, which has already been extended once following the occurrence of some practical problems.
In a statement, the ministry said It is clarified that the investors, who do not provide their PAN by December 31, 2006, will not be able to debit their demat accounts and trade on the stock exchanges from January 1, 2007.
For those who have been opening demat accounts after April 1 this year, quoting PAN is already essential. The deadline of December 31 is for those who had opened such accounts before April 1. Those who do not give PAN details, their demat account would be suspended for debit.
The exercise is part of Know Your Client norms of the Sebi after the IPO scam. The fraud was perpetuated by a handful of stock market operators, who opened multiple accounts under fictitious names to corner a large chunk of shares in IPOs reserved for retail investors.
Sebi has found such irregularities in 21out of 105 public offers that hit the market during 2003-05. The market regulator had recently asked depositories NSDL, CDSL and their 8 participants to pay Rs 116 crore as disgorgement for their lax attitude in preventing the scam.
Finmin says the move is aimed especially at tightening Sebi regulations following the IPO scam