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

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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.

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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...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
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, CIN : U67120MH1996PTC160201
INDIRA COMMODITIES PVT. LTD. CIN : U65921MH1995PTC089399

DISCLAIMER:

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

INVESTORS GRIEVANCE

Manoj Bhandari. Email: complaint@indiratrade.com. Call : 0731-4797275