CLOSE X
Important Update
Home

Blogs

Stock Market Blogs

Why is PAN card a mandatory document for opening a Demat account? February 22 2021Demat account without PAN card, Share market

Visit Count: 86

In the previous blog, we had witnessed that holding a PAN card is mandatory for opening a Demat account. In this blog we will discuss about why is PAN card mandatory and an essential document.  

To enhance KYC (Know Your Customer) norms, the SEBI had made Permanent Account Number (PAN) card mandatory. By Law you are entitled to provide PAN card details to open Demat account.   

For every Indian, a PAN card is a very crucial document. It is also used not only for monitoring taxpayers, but also for some of the most significant day-to-day transactions. Indeed, it is also demanded by every investment platform. PAN card is addressed as a proof of legitimacy and authenticity of a person and his existence in the nation. With the help of PAN card one can get involved in all the governmental, non-governmental or any other kind of activities without restrictions. It is meant to be essential for considerably high number of services.  


The PAN card is a way of monitoring the holdings of the investor as a distinctive identity that can be matched with his income tax filings. Thus, if you have a valid PAN card, even if you are a minor or a housewife, it can be used to open a Demat account and start investing.

Due to its dynamic nature, PAN card is widely accepted and asked for. It acts as a security for independent trader as well as the broker. PAN card acts as a assurer once you’ve invested your money in any kind of financial activity. 

PAN card is widely accepted as an identification proof, for all financial institutions and other organizations, it is a trusted identity document. PAN card is also mandatory to file Income Tax (IT) return.

COMMENTS
Categories

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Jyoti Singh. Email: compliance@indiratrade.com. Call : 0731-4797275