Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: ACCOUNTING STANDARD :: due date for vat payment :: form 3cd :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: TDS :: VAT Audit :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
News Headlines »
 5 tax-saving funds that have given stellar returns in the past 5 years
 Find out which ITR Form is suitable for you
  Pr CIT vs. Baisetty Revathi (Andhra Pradesh High Court)
 What is income tax?
 Refund procedure initiated under GST
 Income tax returns (ITR) filing: How to get capital gains tax benefits on assets in own name
 7 avenues to help you save tax under Section 80C of Income Tax Act
 How to make income tax law less taxing
 Your Income Tax returns (ITR) filing revised? 5 points you must worry about
 Revised income tax returns under I-T radar
 Govt to simplify income tax laws, sets up task force under taxman Arbind Modi to study overhaul

KYC norms force firms to re-check PAN details
March, 07th 2007

As a part of strengtheningthe Know Your Customer (KYC) norms, the permanent account number (PAN) has been made the sole identification number by the regulatory authority in all financial market transactions.

The intention behind this move was to do away with fraud and facilitate an audit trail in case of malpractices found in the system. But it seems that certain individuals with manipulative intentions in the stock market has been finding new ways to effectively execute their plans. This has already raised alarm bells among some domestic brokerage houses which are beginning to re-check all the details pertaining to the clients together with their documentary proofs.

It has come to the notice of some domestic brokerage houses that some of their clients had opened their trading and demat account showing PAN details as the proof of identity.

Once these clients got their accounts opened, they had applied for another PAN card with the income tax authority showing the address proof of some other place and were getting their former PAN cards cancelled. So naturally, all the transaction involved with that particular account would be under the cancelled PAN card.

With the KYC norms being made stringent by the market watchdog Securities and Exchange Board Of India (Sebi), the domestic brokerage houses are finding themselves in a hapless situation.

As inspection of all the accounts maintained by the Depository Participants (DPs) are being made stricter, and an imminent regulatory action on the cards for not adhering to the laid rules and regulations prescribed under KYC norms, these broking houses are feeling the heat now.

The fault lies with the brokerage houses themselves, says an official with a domestic brokerage.

In a booming capital market, to attract more clients and generate large revenues through brokerage fees, these firms had shown some laxity in checking the necessary documents and authenticity of the documents provided by their clients while opening the accounts then.

Sebi had already made it clear way back in August 2004, that many accounts still do not have the necessary details regarding the clients and the trading members should ensure their client details are updated at periodical intervals. Though late, Sebi is handing out stringent punishment for erring members.

Broking houses have issued deadlines to their clients to submit the necessary documents as proof and failure to do so will lead to suspension or freezing of their trading accounts, said an official with a domestic brokerage house.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions