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Now, Aadhaar may be made mandatory for buying shares, mutual funds

When the new rule will come into effect and whether Aadhaar will completely replace PAN is not known

BS Web Team  |  New Delhi 

aadhaar card for buying shares

The government might soon make mandatory for buying shares and to prevent the conversion of into white through the stock market, the Economic Times reported on Thursday.  

According to the financial daily, the government and the Securities and Exchange Board of India (Sebi) are planning to link financial market transactions to after, according to two sources cited by the report, the former came to realise that the permanent account number (PAN) might not be sufficient in putting an end to tax evasion.  

"We have been told that making compulsory is in the offing," a top official with a financial services firm told the financial daily. 

However, according to a CEO of a brokerage firm, who spoke to the financial daily on the condition of anonymity, the move could unsettle some "regional players" who could see a "dip in activity even in IPO market". However, the source said this dip would be temporary. According to the unnamed CEO, these players would be worried over how many clients would remain once is made mandatory.

According to the report, when such a compulsory linking will come into effect is unclear. Further, it is not known yet whether the will serve as the sole identification number for financial market transactions, thereby replacing the  

Is not enough?

Brokers who spoke to the financial daily said that has not been able to prevent people from using the for money laundering. They said that multiple PANs and fake demat accounts were being used to bring in into the  

The comes after the government, as reported earlier, deleted or de-activated more than one million PANs in a move to check fake identities. Reportedly, as on July 27, 11,44,211 duplicate PANS have been identified, said the Indian Express

has quickly proliferated into various areas as the government's preferred form of identification. 

As reported earlier, Finance Minister Arun Jaitley, through an amendment to tax proposals in the Finance Bill for 2017-18, had made linking to mandatory for filing income tax returns.

The revenue department has said that "every person who has been allotted as on July 1, 2017, and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his number, shall intimate his number to the principal director-general of income tax (systems), or DGIT (systems)".

As reported earlier, the new deadline for Aadhaar-linking is August 31. 

Also, the government had in October last year made the unique identification number mandatory for everyone to get LPG subsidies. In March this year, it was extended for free cooking gas connections to women of BPL households.

First Published: Thu, August 10 2017. 10:35 IST