MUMBAI, MAR 6:  As a part of strengtheningthe Know Your Customer (KYC) norms, the permanent account number (PAN) has been made the sole identification number by the regulatory authority in all financial market transactions.
The intention behind this move was to do away with fraud and facilitate an audit trail in case of malpractices found in the system. But it seems that certain individuals with manipulative intentions in the stock market has been finding new ways to effectively execute their plans. This has already raised alarm bells among some domestic brokerage houses which are beginning to re-check all the details pertaining to the clients together with their documentary proofs.

It has come to the notice of some domestic brokerage houses that some of their clients had opened their trading and demat account showing PAN details as the proof of identity.

Once these clients got their accounts opened, they had applied for another PAN card with the income tax authority showing the address proof of some other place and were getting their former PAN cards cancelled. So naturally, all the transaction involved with that particular account would be under the cancelled PAN card.

With the KYC norms being made stringent by the market watchdog Securities and Exchange Board Of India (Sebi), the domestic brokerage houses are finding themselves in a hapless situation.

As inspection of all the accounts maintained by the Depository Participants (DPs) are being made stricter, and an imminent regulatory action on the cards for not adhering to the laid rules and regulations prescribed under KYC norms, these broking houses are feeling the heat now.

The fault lies with the brokerage houses themselves, says an official with a domestic brokerage.

In a booming capital market, to attract more clients and generate large revenues through brokerage fees, these firms had shown some laxity in checking the necessary documents and authenticity of the documents provided by their clients while opening the accounts then.

Sebi had already made it clear way back in August 2004, that many accounts still do not have the necessary details regarding the clients and the trading members should ensure their client details are updated at periodical intervals. Though late, Sebi is handing out stringent punishment for erring members.

Broking houses have issued deadlines to their clients to submit the necessary documents as proof and failure to do so will lead to suspension or freezing of their trading accounts, said an official with a domestic brokerage house.

-Financial Express

civilindia com www civilindia com civil india kyc nsdl kyc check civilindia kyc civilindia civil kyc civilsindia com www civilindia nsdl pan Kyc nsdl kyc verification www civilinindia com nsdl kyc KYCNORMS nsdlkyc nsdl kyc/verification kyc check nsdl kyc norms kyc for demat kyc for demat account check pan details www civilindiakyc com WHAT IS THE KYC NORMS IN INDIA-DEMAT ACCOUNT check pan account civillindia HOW CAN I DO KYC OF DEMAT www nsdLKYC KYC NORMS FOR ICICI DEMAT ACCOUNT kyc verification kyc norms for opening a trading account with a broker kyc of broking firms kyc norms in stock market kyc norms in shares kyc norms for opening dmat accout pan details www nsdlkyc com kyc norms in demaT nsdl civil india kyc scams in india KYC demat account opening resume for broking firm kyc document pan kyc check what is kyc in broking firm PAN CARD KYC CHECK what is KYC means for broking firm nsdl-pan-kyc nsdl pan verification kyc what is kyc norms in broking what is kyc charges in broking houses www civilindia kyc pan com SEBI KYC guidelines trading account kyc norms for stock trading kyc norms for d-mat accounts kyc form for demat account civilsindia com kyc civils india kyc check adress proof site of civilindia com civilindiakyc com civilindiakyc civilindia kyc application form civilindia com kyc civil pan verification civil india site KYC civil india pan kyc Civil india nsdl kyc check civil india kyc norms checking civil india FOR PAN CHECKING checking of pan card number of firms CHECK KYC NSDL cereal pan kyc check civilsindia kyc demat account check demat account client details KYC for Demat services kyc for demat account holders kyc for broking firms KYC dmat account KYC demat account opening kyc demat account KYC civil india kyc checking in demat account is kyc is also necessary for demat account holder india kyc norms info HOW TO FIND kyc IN NSDL HOW TO CHECK PAN KYC ADDRESS how to check KYC on NSDL how to check KYC details HDFC civil india kyc COM demat account opening tips] cache:ZXJurDZAst8J:demataccount com/2007/03/07/pan-verification-service-to-dps/ pan verification site 

Related posts:

1. Govt Suspends 4.3 Million Demat Accounts
2. Opening an account
3. PAN sole identification for participation in equity market