To ensure compliance with anti-money laundering rules, leading stock exchange BSE today extended the deadline for new mutual fund investors to submit PAN and Aadhaar till April 1, 2018, failing which their folios would be closed. “The effective date for mandatory submission of PAN and Aadhaar number with requisite documents at the time of opening new folio or account, will now be April 1, 2018 instead of February 15, 2018.
“Accordingly, no new folio account will be opened without the said documents effective April 1, 2018,” BSE said in a statement. For new mutual fund accounts opened from February 15, investors were required to submit PAN and Aadhaar at the time of opening of such folios. Folios are numbers designated to individual investor accounts, though one investor can have multiple accounts.
In case of the existing mutual fund (MF) folios and for accounts opened thereafter up to February 14, investors need to submit such information by March-end this year. BSE runs mutual fund distribution platform BSE StAR MF. The move follows the government’s amendment of the Prevention of Money Laundering (Maintenance of Records) Rules with regard to collection of Aadhaar from clients, in June.
In October, the exchange had asked its brokers to submit details about preparedness for furnishing Aadhaar details of their clients by the month-end in order to ensure compliance with anti-money laundering rules. In compliance with the PML norms, banks have already sought Aadhaar details from customers.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.