BSE banks on PAN details for self-trade prevention checks

Leading bourse BSE will now conduct self-trade prevention checks based on permanent account numbers (PANs) of investors trading on its equity derivative platform.
"Using PAN details available in the exchange records... checks shall help prevent matching between a buy and a sell order of a client placed by different members in the same order book," BSE said in a statement today.
Accordingly, the exchange has asked its trading members to verify PAN details of clients registered in the exchange's UCC (Unique Client Code) system.
The new mechanism came into effect in equity derivatives yesterday, BSE said.
Currently, self-trade prevention check (STPC) prevents matching between a buy and a sell order by a member for the same client code.

The exchange had introduced this for the equity derivative platform on January 30, 2015.
Self-trades do not result in change of ownership as the buyer and the seller are the same.
The Securities and Exchange Board of India takes action against those entities that indulge in these activities with malafide intent under its Prohibition of Fraudulent and Unfair Trade Practices norms.