As per the new rules and norms of the government, Stock exchanges have been asked to file the Aadhaar details of all their existing clients before the end of this year. Also as per the news, it came to light that all the brokers are struggling with the fear of not being able to meet the deadline they have been given.
Brokers Requested for the Extension of Deadline to Complete the Updating of the Accounts
Also as per the recent floating news, it has been said that the brokers have asked for an extension on the deadline.
According to the top-notch financial services, it is declared that the brokers need at-least a year to update the complete database as till December, it is impossible to compile and update the complete database. Also, the struggle of making contact with the legacy clients and investors who are not active now makes it even cumbersome for the brokers to update their accounts within the timespan.
According to the recent announcements and directions, all the brokers are directed to cease the accounts of the clients who fail to submit their Aadhaar information in time by December 31st of this year. This announcement extended with the announcement that, the accounts of those clients who did not submit their Aadhaar information will be ceased till the time they do so. Also, it has come to our notice that investors are getting unhappy with the changes as they are facing difficult proposition of making clients happy and ensuring the compliance.
Brokers and Investors Unhappy With the Direction and Deadlines
This announcement has hit hard on the investors, brokers, and clients. Small brokers are scared of the cost escalation as it also entails the additional expenditure. Also, the orders are being questioned as the stock accounts are already linked with the PAN numbers and as per the recent orders of linking PAN numbers with Aadhaar cards, it sounds like a duplication of the work. Where this question is popping up in the market, there, the striving answer is also floating in the market. As there are many traders who are using multiple PAN numbers, linking Aadhaar Card will help curb this manipulation said some of the finest Industry Players.
The New Order of linking Aadhaar Cards, A Move to Curb Stock Market Manipulation
By linking the Aadhaar cards with the stock accounts, not only the verification of the clients will become easy but, it will curb the stock market manipulation that is increasing these days. Also, this order is an extension of the money laundering law and through this, every client or trading member has to comply with the PML rules effective through June 1st.
Source – Business Standard