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09 Jul 2023, 10:30 AM
Trading restrictions due to not linking PAN and Aadhaar from July 10, 2023
As per regulations, linking your PAN to your Aadhaar is mandatory. Exchanges(NSE, BSE & MCX) and depository (CDSL) have imposed the following restrictions until your PAN is linked to Aadhaar and updated in their records.
- Buying and selling will be blocked on NSE, BSE, and MCX.
- Buying and selling of mutual funds will not be allowed.
- Demat account will be frozen at CDSL, and you cannot exit your holdings.
How long does it take for the status to be updated if the PAN is linked to Aadhaar? And are my orders being blocked by Zerodha?
To allow trading activity, the status of your PAN & aadhaar should be marked as operative at the exchanges (NSE, BSE & MCX) and depository (CDSL) records. It may take up to 30 working days for the status to be updated at each entity as they also rely on external sources. There have been instances where there has been a delay in syncing data between income tax records, exchange & depository records. In such cases, it may take longer for the exchanges to mark the segments as active and the demat account to be unfrozen.
As a broker, we have limited control, and the orders and accounts are not being blocked at Zerodha. While we understand this can be frustrating for clients, we are constantly in touch with the depositories and exchanges to reduce disruptions in trading activity due to the delays.
If your PAN and aadhaar were linked before the deadline of June 30th 2023, and if you are unable to trade or if your demat account is frozen, please create a ticket here. We will forward such cases to exchanges and depository to take necessary action.
To know how to link your PAN with Aadhaar, click here.
Check these circulars (NSE and BSE) and the Government of India notification for more.