PAN card is mandatory for opening a Demat account
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.
What is PAN Card?
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.