Scholarships asked brokers to provide Aadhaar details to all their existing customers before the end of this year. Brokers fear they can not meet the deadline and request more time to comply.
“The December deadline will be slightly heavier in terms of 100% compliance. We told the study scholarships to give us a year to complete the database,” said CJ George, MD, Geojit Financial Services.
“There are legacy customers – these are a lot of investors who are not active, but who have been active in the past.” He asked us deadlines for such accounts, even if we give notice, they will not respond.
In an opinion published last week, scholarships ordered resellers to stop accounts of customers who do not have Aadhaar data on December 31, 2017. Customers who opened trading accounts on June 1, 2017 received six months to submit details .
“In case of failure to present documents within the deadline, the account will no longer be operational until the Aadhaar number is presented by the customer,” BSE said in a note dated August 17.
“One way is to freeze the account, which will make investors dissatisfied. We are faced with a difficult proposition to make customers happy and at the same time ensure compliance,” George said.
Smaller runners also fear increasing costs to meet the new diktat. “This entails an additional cost for us. We have no choice but to comply, but it is an irritant, both runners and customers.
There are already certain conditions for the trading of shares belonging to PAN, KYC, etc. So when the connection with the PAN Aadhaar became mandatory, so it still Aadhaar case that is linked to the Demat.
It’s just a duplication of work. In addition, it should have been done prospectively rather than retroactively, “said Alok Churiwala, CEO of Churiwala Securities.
Players in the industry say that there are customers who use several numbers of PAN for trade. Making Aadhaar mandatory will help eliminate these investors and curb manipulation.
“By demanding Aadhaar, current accounts would be easier.” This manipulation of the stock market will undoubtedly cushion, which increased. However, this is only an extension of the current legislation on the fight against money laundering
All new members / commercial customers must comply with PML (Money Laundering Prevention) standards on June 1, “said Mehul Patel, a member of the EEB Brokers Forum.