To
All Trading Members of the Exchanges
This is with reference to Exchange notice no. 20230626-2 dated June 26, 2023, and 20240215-55 dated February 15, 2024, regarding not permitted to trade in case PAN is not linked with their Aadhaar.
Trading members are also requested to refer SEBI Circular -SEBI/HO/MIRSD/SECFATF/P/CIR/2024/41 dated May 14, 2024, and Exchange notice no. 20240517-38 dated May 17, 2024, regarding the Review of validation of KYC records by KRAs under Risk Management Framework
A copy of the said SEBI circular is enclosed as Annexure 1.
Point 12 of the FAQ on “KYC norms for Securities Market” provided by SEBI at https://www.sebi.gov.in/sebi_data/faqfiles/may-2024/1715694256793.pdf states the below
“12. Is PAN-Aadhaar seeding mandatory for transactions in 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 are 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 securities market.”
In view of the above, 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 w.e.f. June 3, 2024, if all the other requisite conditions (like valid PAN, 6 KYC attributes, KRA compliant etc) are fulfilled.
Trading Members are advised to take note and comply with the above guidelines.
In case of any clarifications, members may contact us on details given as under:
For and on behalf of BSE Ltd.
Umesh Hanjankar Spandan Jayadevulu
Deputy General Manager SeniorManager
Investigation Investigation
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