Aadhar card details are mandatory for stock markets. Stock Exchanges have asked brokers to reveal the Aadhar card details for all their clients before the end of the year. Brokers have fear and asked more time for compliance.
CJ George, MD, Geojit Financial Services said, “The December deadline will be slightly cumbersome in terms of achieving percent compliance. We have told stock exchanges to give us a year to complete the full database.”
He added that “There are legacy clients. There are a lot of investors who are not active now but were active in the past. We have asked for time for time for such accounts. Even if we give notice, they won’t respond.”
From the notice of the last week, stock exchanges guided to shut down the accounts of clients who not submit Aadhaar details by 31 December 2017. Those clients who have been opened trading accounts after 1 June 2017 they have to submit details in 6 months.
Bombay Stock Exchange said in the notice on 17 August that, “In the case of failure to submit the documents within the aforesaid time limit, the account shall cease to be operational till the time Aadhaar number is submitted by the client.”
George said that “One way is to freeze the account, which will make the investors unhappy. We are facing a difficult proposition of making the clients happy and at the same time ensuring compliance.”
Alok Churiwala, managing director, Churiwala Securities said that “It entails an additional cost on us. We have no choice than to comply but it’s an irritant, both on part of brokers and clients. There are already certain requisites for share trading pertaining to PAN numbers, KYC, and so on. So, when linking with the Demat. It’s nothing but a duplication of work. Besides, it should have been done prospectively not retrospectively.”
BSE Brokers Forum, member, Mehul Patel said, “By making Aadhaar mandatory, the verification of clients’ accounts would get easier. It will certainly curb stock market manipulation, which has been increasing. However, this is just an extension of current anti-money laundering law… Every new trading member/ client has to comply with the PML (Prevention of Money Laundering) rules effective June 1.”