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Sebi clarifies on PAN use
July, 21st 2006
The Securities and Exchange Board of India (Sebi) has clarified that non-resident Indians and persons of Indian origin will require to produce their PAN (Permanent Account Number) numbers to open full-fledged demat accounts for trading. 
 
In the clarifications released by it on Thursday, the market regulator, however, left open to the two categories the option of opening limited accounts, into which no securities can be credited, but dividends and sale procedures may be collected for a maximum of six months. 
 
The Sebi also allowed people to open demat accounts using their PAN cards issued in their maiden name, according to the discretion of the depository participant (agency) that processes it. 
 
The latter has been directed to verify such claims. 
 
The watchdog also refused to exempt market participants registered with it, such as brokers, from the requirement. However, the Sebi provided to them the option of furnishing the document within 30 days of opening the account.
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