Sticking to deadline for linking Aadhaar with e-KYC for trading accounts: SEBI chief

NEW DELHI: Sebi chairman Ajay Tyagi said the regulator will stick to its December deadline for linking Aadhaar with e-KYC for trading accounts.

The move is reportedly aimed at curbing money laundering and tax evasion through stock markets.

All demat account holders are required to link their accounts with Aadhaar by December 31, 2017. In case of failure to submit the documents within the prescribed time limit, the account would be suspended till the Aadhaar details are submitted by the client.

Last week, the BSE asked trading and clearing members to report preparedness for furnishing Aadhaar details of their clients. While trading members have to submit report on their preparedness by August 23, clearing members and custodians have to do the same by August 25.

In compliance with the amended Prevention of Money Laundering norms, banks have already sought Aadhaar details from their customers.

When asked about more action against shell companies, Tyagi said, “Wherever there is a violation of securities law, they have to be investigated and looked into irrespective of whether it is shell or whatever name you give them. One does not wait for any reference from anywhere”. He also said that panel on corporate governance is expected to submit its report by the end of September.

In a bid improve standards of corporate governance of listed companies, Sebi set up a committee in June under the chairmanship of Uday Kotak, chief of Kotak Mahindra Bank.