MFs stop accepting application without PAN
Mutual fund houses have stopped accepting new applications from investors without PAN.
By PTI |
MUMBAI: Mutual fund houses have stopped accepting new applications from investors without Permanent Account Number (PAN) or evidence of having applied for the number in the wake of directions from market regulator SEBI.
"From July 2, we cannot accept applications without PAN or an evidence for having applied for PAN... the mutual funds are only following the SEBI order," Association of Mutual Funds in India (AMFI) chairman A P Kurien said.
According to SEBI orders, investors must have a PAN for putting in money in mutual funds from July 2 onward. However, the regulator had relaxed this order till December but asked investors without PAN to submit proof that they have applied for getting the number.
Kurien declined to comment on the number of applications rejected by the funds houses but said the inflow of new applications has drastically reduced.
Besides, mutual funds are also asking existing customers to submit their PAN details.
NSDL and CDSL, the country's two top depositories for securities, has already frozen more than 27.5 lakh demat accounts after SEBI made it mandatory for investors to submit PAN for trading in stock markets.
"From July 2, we cannot accept applications without PAN or an evidence for having applied for PAN... the mutual funds are only following the SEBI order," Association of Mutual Funds in India (AMFI) chairman A P Kurien said.
According to SEBI orders, investors must have a PAN for putting in money in mutual funds from July 2 onward. However, the regulator had relaxed this order till December but asked investors without PAN to submit proof that they have applied for getting the number.
Kurien declined to comment on the number of applications rejected by the funds houses but said the inflow of new applications has drastically reduced.
Besides, mutual funds are also asking existing customers to submit their PAN details.
NSDL and CDSL, the country's two top depositories for securities, has already frozen more than 27.5 lakh demat accounts after SEBI made it mandatory for investors to submit PAN for trading in stock markets.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
