 OTC EXCHANGE OF INDIA CIRCULAR Chief General Manager Market Regulation Department-Division of Policy E-mail: mdrao@sebi.gov.in MRD/DoP/Cir-20/2008 June 30, 2008 1.
The Executive Directors/Managing Directors of All
Stock Exchanges 2.
MD & CEO, NSDL 3.
MD & CEO, CDSL 4.
All SEBI Registered Intermediaries Dear Sirs, Sub:
Mandatory requirement of Permanent Account Number (PAN) 1.
Please refer to SEBI circular No.MRD/DoP/Cir-05/2007
dated April 27, 2007 making PAN mandatory for all
transactions in the securities market. 2.
Subsequent to the issuance of the aforesaid circular,
SEBI has received representations from certain categories of
investors requesting for exemption from mandatory
requirement of PAN for transacting in the securities market. 3.
Upon consideration of the said representations, and
in view of Rule 114 C (1) (c) of Income Tax Rules, it is
clarified that PAN may not be insisted in the case of
Central Government, State Government, and the officials
appointed by the courts e.g. Official liquidator, Court
receiver etc. (under the category of Government) for
transacting in the securities market. 4.
However, the aforementioned clarification would be
subject to the intermediaries verifying the veracity
of the claim of the specified organizations, by collecting
sufficient documentary evidence in support of their claim
for such an exemption. 5.
The Stock Exchanges and the Depositories are advised
to : 5.1.
make necessary amendments to the relevant bye-laws,
rules and regulations for the implementation of the above
decision immediately. 5.2.
bring the provisions of this circular to the notice
of the member brokers/clearing members of the Exchange and
depository participants of the Depositories and also to
disseminate the same on the website. 5.3.
communicate to SEBI, the status of the implementation
of the provisions of this circular in the Monthly
Development Report. 6.
SEBI Circular No.MRD/DoP/Cir-05/2007 dated April 27,
2007 stands amended to the extent as clarified under Para 3
of this Circular. 7.
This circular is being issued in exercise of powers
conferred under Section 11 (1) of the Securities and
Exchange Board of India Act, 1992, and Section 19 of the
Depositories Act, 1996, to protect the interests of
investors in securities and to promote the development of,
and to regulate the securities market. Yours
faithfully, S V MURALI DHAR RAO
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