NATIONAL SECURITIES DEPOSITORY LIMITED - NSDL

Circular No.Sub : SEBI Circular on Permanent Account Number (PAN) - PAN to be soleNSDL/POLICY/identification number for all transactions in the securities market2007/0026 Attention of Depository Participants is invited to SEBI Circular No. MDR/DoP/Date: May 10, 2007 Cir-05/2007 dated April 27, 2007 regarding Permanent Account Number to besole identification number for all transactions in the securities market. Acopy of the SEBI circular is enclosed for information and necessary action.Your attention is drawn particularly to Para 3 of the circular forimplementation. Please ensure that your internal auditors comment on theimplementation of this circular in their internal audit report starting fromquarter ending June 2007, to be submitted by September 30, 2007.AnnexureGENERAL MANAGERMarket Regulation Department-Division of PolicyE-mail: mdrao@sebi.gov.inTel: 022-2644 93701. The Executive Directors/Managing Directors/Administrators of All Stock Exchanges2. Chairman & MD, NSDL3. MD & CEO, CDSL4. All SEBI registered intermediariesMRD/DoP/Cir- 05/2007April 27, 2007Dear Sir / Madam,Sub: Permanent Account Number (PAN) to be the sole identification number for all transactionsin the securities market1. The Hon'ble Finance Minister, in his announcement in the Union Budget for the year 2007-08, hasproposed, inter-alia, to make PAN the sole identification number for all participants in the securitiesmarket with an alpha-numeric prefix or suffix to distinguish a particular kind of account.2. In the light of the aforesaid announcement and in order to strengthen the Know Your Client (KYC)norms and identify every participant in the securities market with their respective PAN therebyensuring sound audit trail of all the transactions, it has been decided that PAN would be the soleidentification number for all participants transacting in the securities market, irrespective of theamount of transaction.3. The intermediaries are advised in this regard as under:-3.1 to put in the necessary systems in place so that all the individual databases of their clientsand clients' transactions are linked to the PAN details of the client with which detailedanalysis can be made.3.2 to build the necessary infrastructure for enabling accessibility and query based on PANthereby enabling retrieval of all the details of the clients that is available including thetransactions done by them.[ 57 ]