No extension of deadline for investors to submit PAN details

New Delhi, Dec 29 | Updated: Dec 30 2006, 05:33am hrs
The government on Friday ruled out extending the December 31deadline for investors to submit their PAN details to depositories for trading on the stock exchanges, according to finance ministry sources. The move is aimed at tightening Sebis regulations following the IPO scam.

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.

PTI

Finmin says the move is aimed especially at tightening Sebi regulations following the IPO scam
Investors, who do not provide PAN by Dec 31 cant debit demat a/cs & trade on bourses from January 1