Sebi Takes Stock of Aadhaar Linkage

Sebi Takes Stock of Aadhaar Linkage

Seeks feedback from exchanges on brokers' preparedness to get clients' IDs by December 31

The Securities and Exchange Board of India has set the ball rolling for making Aadhaar compulsory for stock trading. The markets regulator has asked exchanges for their feedback on brokers' preparedness to get their clients to submit the biometric IDs before December 31.

ET reported first on August 10 that Aadhaar would become mandatory for buying shares and mutual funds. The BSE, in a recent circular, asked brokers for their comments on the matter by August 23.It said existing clients will have to submit Aadhaar numbers to their brokers by December 31. New clients should do so within six months of opening demat account.

“In case of failure to submit the documents within the aforesaid time limit, the account shall cease to be operational till the time Aadhaar number is submitted by the client,“ the circular said.

The government and Sebi are making Aadhaar must as part of the Prevention of Money Laundering rules, which aim to curb illegitimate money . Sebi, in recent years, has cracked down on individuals and entities for using the stock exchange platform to convert illegal money into legal money . Currently , the income tax permanent account number (PAN) is considered the most important document for share transactions. But the government has realised that PAN, though unique for every individual for income tax assessment, may not be enough to plug money laundering through the stock market. Market participants said multiple PANs and fake demat accounts are being used to push illegal money into the stock market.

The government recently mandated that Aadhaar be linked to PAN, bank accounts and mobile phone numbers.

Brokers said they are gearing up for implementing Aadhaar but it would be a tedious task.

“It adds to additional cost for brokers but they have no choice but to comply with it,“ said Alok Churiwala, managing director at Churiwala Securities.“This is triplication of efforts as without demat, bank account and PAN, one cannot trade and these three are already mandated to be linked to Aadhaar.“

For large retail broking firms like Angel, it would be a logistical nightmare.

“The issue is that clients don't respond to SMSes, emails, etc. So, it takes a lot of effort to get this done,“ Angel Broking chief executive Vinay Agrawal said.“Customers have already linked Aadhaar with PAN and bank account but due to privacy or confidentiality issues these agencies don't share the details and we have to approach the customers. As brokers, we don't have a choice but the regulator has given us enough time.“

The Economic Times, New Delhi, 21st August 2017

Data storage norm splits digital payments industry

Data storage norm splits digital payments industry India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move. In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET. “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week. RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...

Offer’s for all of you

Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533 drop a mail to sales@webecreator.com

Sebi to finalise options in commodities today

The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...

CA Online

Search This Blog