Big news for those investing in the stock market. These important rules related to PAN card apply.

Big news for those investing in the stock market. These important rules related to PAN card apply.

The stock market regulator SEBI (SEBI-Security Exchange Board of India) on Friday informed all the brokers to link their investors' unique client code (UCC) to their demant account.

This news is very important for those who invest in the stock market. In fact, the market regulator SEBI (Security Exchange Board of India) has informed all the brokers on Friday that they should link the unique client code (UCC) of their investors to their demant account. A unique client code is issued for every investor. In addition, SEBI has also ordered all the Exchange (Stock Exchange) and Depositors to map the UCC and Demat.

Why SEBI gave this order - SEBI has taken this step so that brokers cannot illegally divert investors' securities.

Let us tell you that a unique client code is issued to any investor based on his broking house.

However, if the same person opens a demat account with another brokerage house, then a new unique client code is issued for it.

What is the matter - In the year 2018, SEBI had already issued a warning to divert securities. Later, after talking to stock exchanges and depositors, SEBI has decided that brokers have to map unique client code and demat account. It will also include the investor's PAN and trading segment.

After this, if a broker is clearing every linked unique client code to his member, then the depositors can also map the PAN with this unique client code.

Sebi has said in the circular issued, 'Stock exchanges and depositories should have a mechanism to ensure that inactive and non-operational unique clients do not misuse the code.

Also, it can be ensured that no inactive and non-operational unique client code remains in the system.

What is the last date - SEBI has said that by November 30, the stock exchanges and depositors have to share the data after linking the PAN to the UCC. However, till 31 December has been given for other types of data. After the initial phase, this process will have to continue as an ongoing process.