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The Securities and Exchange Board of India (SEBI) has made the mentioning of Permanent Account Number (PAN) mandatory for public issues. According to SEBI, the application made in public, preferential issue and qualified institutional placements without PAN will be rejected. SEBI further clarified that the applications will not be accepted if the mentioned PAN does not match with the data available in the depositories' database.
The market regulator has already made PAN mandatory for all participants in the securities market irrespective of the amount of transactions. It is found that certain issuers accept the applications even if it does not carry PAN but the same is available in depositories' database. While some applications get rejected even if PAN is mentioned but it is not available in depositories' database.
The Permanent Account Number or PAN is a ten-digit alphanumeric number which is issued by the Income Tax Department. According to laws, anyone who is required to furnish a return of income must obtain a PAN. Now with SEBI's new proposal it seems that everybody will have to obtain PAN.
