PAN compulsory for Demat Accounts
In view of tightening the "Know Your Customer" (KYC) norms, SEBI has made PAN mandatory for for all categories of demat account-holders including minor, trust, foreign corporate body, banks, corporates, FIIs and NRIs.

This comes into effect in respect of all demat accounts that are opened on or after April 2006.

The existing account holders would not be able to operate the account if they do not produce the copy of the PAN card before 30th September 2006.

In case of joint accounts, PAN card has been made mandatory for all the joint holders.

Clients who do not have a PAN card will have to apply for the same. In case you want to apply for a PAN card, you can contact our designated branches.

The demat account holders are requested to inform and update their bank's MICR code numbers by forwarding a copy of the cheque leaf of the bank account mentioned in their demat account.

SEBI has informed vide its SEBI/MRD/DEP/Cir-3/06 dated Feb 21, 2006 that applicants residing in 15 centers where clearing houses are managed by Reserve Bank of India (RBI) would get refunds for public issues only through Electronic Clearing System.

For this purpose, the bank details of such applicants will be taken directly from the database of the depositories in respect of issues made completely in dematerialised form.

Therefore, it is necessary that the MICR code maintained at the database of the depositories have to be updated on a real time basis. This will ensure that the refunds through ECS are made in a smooth manner and that there are no failed/wrong credits.