Trading in stocks? You may not be able to if you don't link PAN with Aadhaar by June 30

Sebi has directed all investors to link their PAN with their Aadhaar card by June 30 and if not done, they will not be able to trade in the securities market. The Central Board of Direct Taxes (CBDT) had earlier extended the deadline from March 31 to June 30.

According to a CBDT circular, the PAN allotted to a person would become inoperative if it is not linked with Aadhaar by March 2023 and would be liable to all the consequences through Act 1961, for not furnishing, intimating, or quoting the PAN.

Sebi had already asked all investors to link their PAN with their Aadhaar number by March end for continual and smooth transactions in the securities market.


Not just in the securities market, mutual fund investors will also face hurdles for non-compliance.

For MF investors, all financial and non-financial transactions including systematic triggers will be restricted if the PAN is not linked with Aadhar.

Further, income distribution cum capital withdrawal (IDCW) reinvestments, payouts, and fixed maturity plan (FMP) payouts will be moved to unclaimed.

Investors, facing issues with their folios, will not be able to lodge any complaint with asset management companies (AMCs) until the PAN is updated. Since PAN is not available, Form 15 G/H will also not be accepted and TDS may get deducted at 20%. Additionally, brokerage payable against investors whose KYC is invalid will be held back.

Mutual fund investors may update and change their PAN, provided it is linked to Aadhaar.

Here's how you can link a PAN with an Aadhar number.

Step 1: Visit the income tax Portal (https://eportal.incometax.gov.in)

Step 2: Click on the Link Aadhaar tab

Step 3: Enter PAN and Aadhaar and click on validate

Step 4: On the second page re-enter PAN details with the mobile number.

Step 5: Validate with OTP received from UIDAI and pay the necessary penalty

Step 6: PAN will be linked to Aadhaar after payment of the penalty.