Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: VAT RATES :: form 3cd :: ACCOUNTING STANDARDS :: VAT Audit :: ACCOUNTING STANDARD :: TDS :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: cpt :: empanelment :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
News Headlines »
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice

Sebi rejects plea for PAN relaxation
June, 15th 2007
The Securities and Exchange Board of India (Sebi) has rejected a plea by mutual fund houses for a phased implementation of the PAN (permanent account number) requirement for all fresh purchases made by investors from next month.
 
The fund houses are now planning an aggressive strategy to bring about an awareness among retail investors to have PAN, the alpha-numeric tax assessment number of issued by the Income Tax department, from next month.
 
Further, 30 mutual fund houses have also joined hands for a `KYC (know your client) project with CDSL Ventures (CVL) to collect and maintain a common data of mutual fund investors such as their name, address and PAN.
 
Sources said Sebi rejected the plea in order to stick to the Budget announcement.
 
Currently, a PAN card is mandatory for investing Rs 50,000 and above in a scheme. It was felt that several cash-rich investors were misusing the existing rules by investing just below Rs 50,000 per scheme in a multitude of mutual fund products, said sources.
 
Though no reliable data are available, market players estimate that only around 12-13 per cent of the nearly three crore mutual fund investor accounts have a PAN. According to industry estimates, only 18 per cent of the 300 million bank account holders have a PAN card.
 
Industry officials said CVL, which has centres at 486 locations spread across 146 cities in 23 states, would help in reaching out to mutual fund investors and register them on a one-time basis.
 
The KYC project would ensure that investors do not have to provide their PAN card for every new investments they make in mutual funds, said officials.
 
Fund houses would just have to check investor details with CVL for every new investments. In case of a change in address, investors would not have to intimate each fund house about the change in their address but they just need to inform CVL about it.
 
CVL, in turn, would make all the necessary changes, which gets updated with the data available with the fund houses, said industry officials.
 
Earlier, in a submission before Sebi, Association of Mutual Funds in India (Amfi) requested for a phased implementation of the mandatory PAN requirement over a period of next six months.
 
The fund houses suggested that the minimum amount of investments for PAN be brought down from Rs 50,000 to Rs 25,000 in the first phase, before bringing it down further to include even smaller investments.
 
The PAN requirement comes into effect at a time when the fund houses are planning aggressive strategy to make inroads into rural areas. Recently, ICICI-Prudential AMC and Reliance Mutual Fund launched a systematic investment plan for as little as Rs 50 and Rs 100, respectively.
 
A P Kurien, chairman of AMFI, said, Any mutual fund investor, irrespective of the amount involved, will have to submit their PAN card details from July 2 onwards. In the securities market, everybody has a PAN and it will now be applicable for mutual funds as well.
 
Almost 70-75 per cent of our retail money comes from small town investors. Now with PAN card becoming mandatory from next month, it will definitely have an impact on our retail inflows from smaller towns, said a top official of UTI Mutual Fund.
 
He also added, A large number of investors used to deliberately apply for Rs 40,000-45,000 to avoid income-tax departments attention.
 
Added Pankaj Razdan, managing director of ICICI-Prudential MF, Getting a large number of retail customers for an inclusive growth will be a tough job now. Apart from educating people about mutual funds, it will now be required to create awareness about having a PAN card as well.
 
In April, the market regulator issued a circular stating that the permanent account number (PAN) would be the sole identification number for all transactions in the securities market.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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