MUMBAI: Central Depository Services (India) Ltd (CDSL), one of the two depository companies, has suspended 4.39 lakh demat accounts following failure on the part of account holders in providing their PAN card details.

According to a press note released by CDSL, of 26.33 lakh demat accounts that are on its rolls, only 21.94 lakh accounts are active as the holders of these accounts have submitted their PAN details.

As per regulations, people have to provide PAN card details for opening demat accounts from April 1, 2006. The accounts opened before April 1 and which were not PAN- compliant as of December 2006 were required to be suspended for debit from January 1, 2007, as per SEBI order.

As of July 14, 2007, CDSL has suspended 1.60 lakh accounts, which had some shares to their credit, while in case of 2.79 lakh accounts there was no share in balance.

The 1.60 lakh accounts have been suspended only for debit entry that is made on sale of shares. Consequently, the account hollers would not be able to sell their shares.

However, in case a shareholder buys shares, the same shares would be credited to his account even if he has not provided any PAN card details, a top official of CDSL said.

Meanwhile, CDSL has opened 6.39 lakh new accounts since January this year.

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