The Bombay Stock Exchange (BSE) on May 30, 2024, issued the notification regarding the Review of validation of KYC records by KRAs under the Risk Management Framework.
The following has been stated namely: -
• The following was stated under Point 12 of the FAQ on “KYC norms for Securities Market” namely: -
“Is PAN-Aadhaar seeding mandatory for transactions in the securities market?
No. The Indian government has made it mandatory for everyone to link their PAN to their Aadhaar, with certain exceptions for NRIs, non-citizens, those over 80, and residents of the states of Assam, Jammu and Kashmir, and Meghalaya.
Clients in whose case, PAN Aadhaar linkage is not found to be verified, shall be allowed to transact with the existing intermediary subject to valid PAN, however, the client’s KYC shall not be allowed portability in the securities market.”
• Hence, PAN - Aadhaar Seeding is no longer mandatory for trading in Securities Markets and if any investor who is eligible for seeding their PAN with their Aadhaar details has failed to do so, due to any reason, shall still be permitted to trade on the Exchange with effect from June 03, 2024.
[Notification No. 20240530-40]
