Foreign portfolio investors are seeking clarification from SEBI on whether they are also bound by the market regulator's mandate of linking Aadhaar with 'all demat accounts', reports Business Standard.
The August mandate, which asked the stock exchanges to freeze demat accounts of traders failing to provide Aadhaar details by December 31, was thought to be meant for domestic investors. But it did not offer any clarification as to whether overseas investors were also bound by the circular.
As the unique 12-digit Aadhaar number cannot be acquired by institutions, the “authorised signatory” of the demat account can get it and thus, that person has to link his unique identity number with the account.
The confusion arises close on the heels of another Aadhaar mandate where Association of Mutual Funds in India (AMFI) has made it compulsory to link the unique ID number with investor folios for mutual fund investments. Investors and fund houses have to submit Aadhaar details before December 31 this year.
