Mandatory requirement of Permanent Account Number (PAN)

CIRCULAR

CIR/MRD/DP/ 22 /2010                                    July 29, 2010

To,
The Depositories

Dear Sir/Madam,

Sub: Mandatory requirement of Permanent Account Number (PAN)

1. Please refer to SEBI circular No.MRD/DoP/Cir-05/2007 dated April 27, 2007 making PAN mandatory for all transactions in the securities market.

2. As you are aware, the demat accounts for which PAN details have not been verified are “suspended for debit” until the same is verified with the Depository Participant (DP). However, it has come to our notice that despite follow up, investors are not furnishing the PAN details.

3. In order to ensure better compliance with the Know Your Client (KYC) norms it has been decided that with effect from August 16, 2010 such PAN non-compliant demat accounts shall also be "suspended for credit" other than the credits arising out of automatic corporate actions. It is clarified that other credits including credits from IPO/FPO/Rights issue, off-market transactions or any secondary market transactions shall not be allowed into such accounts.

4. The Depositories are advised to:-

a) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision immediately, as may be applicable/necessary ;

b) bring the provisions of this circular to the notice of their DPs and advising them to also communicate the same to all the Beneficial Owners (BOs); and

c) disseminate the same on the website.

5. This circular is being issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992 and Section 19 of the Depositories Act, 1996 to protect the interests of investors in securities and to promote the development of, and to regulate, the securities market.

Harini Balaji

Deputy General Manager

022-26449372

email: harinib@sebi.gov.in

Securities and Exchange Board Of India (Mutual Funds) (Amendment) Regulations, 2010

In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2010 to further amend the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

Click here for the text of the notification.

Cost Inflation Index for 2010-11

Section 48, Explanation (v) of the Income-tax Act, 1961 - Capital gains - Computation of - Notified Cost Inflation Index for financial year 2009-10 - Amendment in Notification No. S.O. 2292(E), dated 9-9-2009

Notification No. 59/2010 [F.No.142/11/2010-TPL], dated 21-7-2010

In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes number S.O. 2292(E), dated the 9th September, 2009, namely:-

In the said notification, in the Table, after serial number 29 and the entries relating thereto, the following serial number and entries shall be inserted, namely :-

 “30                               2010-2011                                711”

Physical Settlement of Stock Derivatives

SEBI has now permitted to settle stock options and futures by delivery of underlying stock.

Click here for the text of the circular no. CIR/DNPD/ 4 /2010 dated July 15, 2010.

Compulsory filing of e return

CBDT has vide notification 49 dated July 7, 2010 has made compulsary to file eloctronic return with or without digital signature for firm, HUF and Individuals to whom provisions of section 44AB applies.  

Also, it has been manatory for all companies to file the return of income electronically under digital signature.

Click here for the text of the notification 49 dated July 7, 2010.