The Association of National Exchanges Members of India (ANMI) on Tuesday urged the government to extend the deadline for initiating the Permanent Account Number (PAN) with Aadhaar by six months, which ends on March 31.
In a letter to the Securities and Exchange Board of India (SEBI), ANMI asked the market regulator not to suspend the accounts of investors whose PAN is not linked to Aadhaar.
In accordance with the Central Board of Direct Taxes (CBDT) notification dated September 17, 2021, if the PAN is not linked to Aadhaar by March 31, 2022, the PAN of such persons will become inoperative immediately after said date.
In a letter to full-time SEBI member Ananta Barua, ANMI noted that as per the exchange and deposit circulars on seeding Aadhar with PAN, in case the PAN is not seeded with Aadhaar before the date specified by the government, it will not be considered a valid PAN.
Accordingly, from the said date in the event that PAN and Aadhar are not linked, new clients as well as existing clients of the intermediaries will not be able to carry out new transactions or offset existing positions, and their Demat accounts will also have to be suspended.
“Please note that the PAN-Aadhaar link is an ongoing activity and the intermediaries have kept clients informed of the need and importance of completing the link. However, you will understand that this is an ongoing activity dependent on the client and that the client is required to independently complete the link on the income tax website,” ANMI said.