Aadhaar card number can be made mandatory to buy shares and mutual fund units soon. The government and the Securities and Exchange Board of India (SEBI) are planning to link Aadhaar card to financial market transactions. They believe that this will help prevent the playing of black money through the stock market.
Two sources familiar with the matter said that the government has realized that the PAN tax is not enough to prevent theft. That’s why he is betting on the base. Now brokers or mutual fund companies would not have to mention the Aadhaar number and investors are identified through PAN. SEBI officials have informally informed some market intermediaries informally about this. They have been told that the base number can be made mandatory for financial market transactions. This information was given by the top official of a major financial services company.
It is not known when it will be announced. It is not known whether the base will replace the pan in this case. The government has already told the first base to link pan, bank account and mobile phone. Those who hold a bank account must submit their support details to their bank till December 31 this year.
The basis for online mutual fund transactions can be used for a Know Your Client (KYC) check. Investors doing online KYC (e-KYC) from the base are not required to go to the Mutual Fund and do not have to go there for joining the signature. Some brokers have based Vantage sought e-KYC for your industry. Brokers say that making the base mandatory will help in removing some of the issues related to the stock market.
Market participants said that PAN does not help in preventing money laundering through the stock market. Brokers said that black money is still being brought to the market through multiple PAN and fake debit accounts. Jain said that the government should make the foundation a single identification document. This step will have a wider effect on the brokerage industry. The CEO of a brokerage firm said on condition of anonymity, “Some regional companies are worried about how many old clients will stay with them after making the base mandatory? This will reduce participation in IPO market, but it will be a temporary problem.”