The initial deadline for adding a nominee was March 31, 2022
In July 2021, SEBI asked all existing eligible trading and demat account holders to provide nomination details.
It is mandatory for all demat and trading account holders to register a nominee. If not done yet, there are chances that your demat account may be frozen from April 1, 2023.
The initial deadline for adding the nominee was March 31, 2022, but the Securities and Exchange Board of India (SEBI) extended the date by a year following representations and feedback from various stakeholders.
In July 2021, SEBI asked all existing eligible trading and demat account holders to provide nomination details.
Recently, the capital market regulator asked all investors to link their PAN with Aadhaar number by the end of March for continuous and smooth transactions in the securities market.
SEBI said that non-adherence to this would be treated as non-KYC compliance and could lead to restrictions on securities and other transactions till PAN and Aadhaar are linked.
“Since PAN is the key identification number and forms part of the KYC requirements for all transactions in the securities market, all SEBI registered entities and Market Infrastructure Institutions (MIIs) are required to ensure valid KYC for all participants.
SEBI said, “All existing investors shall ensure linking of their PAN with Aadhaar number before March 31, 2023, so as to enable continuous and smooth transactions in the securities market and to avoid the consequences of non-compliance of the said CBDT circular.” “
The provisions of the Income Tax Act make it mandatory for every person who has been allotted PAN to intimate his Aadhaar number to the prescribed authority so that Aadhaar and PAN can be linked. This is required to be done on or before the notified date, failing which the PAN will become inoperative.
The Central Board of Direct Taxes (CBDT) had issued a circular in March 2022, under which PAN allotted to an individual would become inoperative if not linked with Aadhaar by March 31, 2023, and would be liable for all consequences under income. Tax Act, 1961, for not furnishing, informing or quoting PAN.
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