PAN details still awaited for over 25 lakh demat accounts

PAN details still awaited for over 25 lakh demat accounts
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First Published: Wed, Aug 08 2007. 05 36 PM IST
Updated: Wed, Aug 08 2007. 05 37 PM IST
PTI
New Delhi: More than seven months after trading was suspended in demat accounts without a Permanent Account Number, investors are yet to provide the PAN details for over 25 lakh such frozen accounts.
According to latest data available with the two leading depositories NSDL and CDSL, as many as 25.4 lakh demat accounts are still suspended due to non-compliance of PAN details. This represents nearly 60% of about 44 lakh accounts that were frozen with effect from 1 January 2007.
Interestingly, more than 11 lakh frozen accounts have some shares in their portfolio, down from more than 20 lakh such accounts at the beginning of this year.
Besides, there are close to 15 lakh suspended accounts currently without any balance in their portfolios as against about 23 lakh at the start of the suspension exercise.
While the number of suspended accounts with shares to their credit has dropped by about 45%, those without any balance has declined by 35%.
NSDL and CDSL together maintain a total of more than 105 lakh demat accounts currently, up from nearly 99 lakh at the beginning of this year. However, the total number of active accounts, for which investors have submitted the PAN details, is only about 80 lakh currently, up from about 55 lakh when the suspension exercise began.
The suspended accounts with the two depositories represent about 24% of the total number of accounts, down from nearly 44% at the beginning of this year.
As directed by market regulator Sebi, the depositories had asked investors in all categories of demat account-holders including foreign corporate body, banks, corporate, FIIs and NRIs to submit PAN details.
This came into effect in respect of all demat accounts that were opened on or after 1 April 2006. Effective January 2007, investors are not allowed to operate those accounts taht were opened before that date and were non-PAN compliant.
Since January, more than 18 lakh suspended accounts have been reopened, but it is just about 40 per cent of the total number of accounts that were frozen.
According to CDSL, it had a total number of 1.55 lakh accounts with balance that were suspended for debits. These account holders are not allowed to sell their shares, but in case a shareholder buys shares they would be credited to the account.
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First Published: Wed, Aug 08 2007. 05 36 PM IST
More Topics: PAN | Demat | investors | stocks | NSDL |