Securities and Exchange Board of India (SEBI) is planning for making Aadhaar compulsory for stock trading. The last date for the submission of the Aadhaar cards is before 31st December.
According to a circular released by BSE, the existing customers have to submit their Aadhaar numbers to their brokers by 31st December. And for the new clients, 6 months of time will be given from the time they start their demat account.
This step has been taken by SEBI, in order to curb out illegal money, which is also a part of Prevention of Money Laundering (PML) rules, where it is observed that the entities use stock exchange platform to convert illegal money into legal money.
Government had to take the step to link Aadhaar as it has realised that PAN is not enough to plug money laundering through the stock market. Market participants said multiple PANs and fake demat accounts are being used to push illegal money into the stock market.
Also, Brokers can submit their feedback on the matter latest by 25th August 2017.
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