The Securities and Exchange Board of India vide its notification dated 8th March 2021 has rationalised the compliance requirement of collecting and maintaining copies of permanent account number of clients by members of the exchanges having commodity derivatives segment and enhanced the use of e-Pan which shall be in force from 1st April 2021.
SEBI has made it mandatory for the members of the exchanges having commodity derivatives segment to use Unique Client Code (UCC) for all clients transacting on the commodity derivative segment.
The exchanges with commodity derivatives segment shall not allow execution of trades without uploading of the UCC details by the members of the exchange.
Further the exchanges having commodity derivatives segment shall ensure that the members of their exchanges shall collect copies of PAN cards issued to their existing as well as new clients after verifying with the original and shall cross check the aforesaid details collected from their clients with the details on the website of the Income Tax Department.
