Securities and Exchange Board of India (SEBI) vide its circular no. MRD/DoP/ Cir-05/2007 dated April 27, 2007 has informed that PAN would be the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction. Extracts of aforementioned SEBI circular are as under:
- The Hon'ble Finance Minister, in his announcement in the Union Budget for the year 2007-08, has proposed, inter-alia, to make PAN the sole identification number for all participants in the securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account.
- In the light of the aforesaid announcement and in order to strengthen the Know Your Client (KYC) norms and identify every participant in the securities market with their respective PAN thereby ensuring sound audit trail of all the transactions, it has been decided that PAN would be the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction."
This has been informed to DPs vide Circular No. NSDL/POLICY/2007/0026 dated May 10, 2007.