Depositories have been directed by SEBI, that PAN Card (Permanent Account Number) has to be obtained compulsorily for all categories of demat accounts holders including Minor, Trusts, Foreign Corporate Bodies, Banks, Corporates, FIIs and NRIs in respect of all demat accounts opened by them on or after April 01, 2006.

Further, accountholders who have opened demat accounts prior to 01.04.2006, should submit the PAN card latest by 30.09.2006, failing which they will not be able to operate their demat accounts. In case of Joint Account Holders, the PAN card details of each of the joint account holder should be obtained. A photocopy of the PAN card of the person(s) should be kept on record along with other documents pertaining to the account opening. The photocopy of the PAN card must be verified with the original PAN card.

The staff of the DP should personally verify the identity and address of the applicant(s) while opening demat accounts and the record of the person who carried out such verification should be maintained.

Further,the PAN card details submitted by the applicant(s) should be verified with the name(s) appearing on the website of the Income Tax Department, i.e. http://incometaxindiaefiling.gov.in/challan/enterpanforchallan.jsp

In case the name(s) do not match or the PAN card details are not present in the PAN card database, DPs should seek necessary clarification from the applicant(s) and activate the account only when the discrepancy is resolved.