The Hindu Business Line : Gulf NRIs seek time till Oct 1 on PAN compliance to participate in RPL public issue

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Gulf NRIs seek time till Oct 1 on PAN compliance to participate in RPL public issue

Vimala Vasan

SEBI's new norm for opening depository accounts

Abu Dhabi , April 9

NRI investors may not be able to cash in on Reliance Petroleum Ltd's imminent initial public offering or other forthcoming public issues as new SEBI requirements mandate that all depository account holders should provide a PAN number.

As NRIs do not have PAN numbers and obtaining one would require them to visit to India, many investors may be denied the opportunity to participate in IPOs in the coming weeks.

Investors here are urging SEBI to permit them to open depository accounts immediately to enable them to participate in RPL's April 13 IPO and give them time until October 1 to provide the mandatory PAN number.

New SEBI guidelines insist that all fresh applicants for depository accounts including NRIs, should provide PAN number, Mr K.V. Shamsudheen, Chairman, Pravasi Bandhu Charitable Trust, told Business Line.

"Thousands of NRIs are trying to open depository accounts to apply for the mega RPL issue, but all of them are disappointed because of the new directive to provide PAN number which is very difficult for NRIs to obtain by sitting abroad. As obtaining a PAN card takes a duration of anywhere between 20 and 25 working days in India, it will be very difficult for NRIs to obtain it before the IPO. Further, most NRIs do not have a representative in India," he pointed out.

He urged the SEBI to permit NRI investors to give time till October 1 to provide the PAN number, but permit them to immediately open depository accounts. "NRIs will then have time to visit India during the summer break in July-August to apply for the PAN number and fulfil the requirements," he said.

He recalled that when Reliance Industries Ltd issued their fully convertible debenture in 1997, it helped to increase the number of NRI investors fourfold because of mass subscription for that issue. Now thousands of fresh investors were keenly awaiting the IPO from Reliance Petroleum, which is all set to open for bidding on April 13. The issue is finance the Rs 27,000-crore refinery at Jamnagar in Gujarat. It would be a great opportunity to increase the NRI investor base in India's vibrant capital market, he added.

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