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CIRCULAR

July 29, 2010

CIR/MRD/DP/ 22 /2010

The Depositories

Dear Sir/Madam,

Sub: Mandatory requirement of Permanent Account Number (PAN)

1. Please refer to SEBI circular No.MRD/DoP/Cir-05/2007 dated April 27, 2007 making
PAN mandatory for all transactions in the securities market.

2. As you are aware, the demat accounts for which PAN details have not been verified
are “suspended for debit” until the same is verified with the Depository Participant
(DP). However, it has come to our notice that despite follow up, investors are not
furnishing the PAN details.

3. In order to ensure better compliance with the Know Your Client (KYC) norms it has
been decided that with effect from August 16, 2010 such PAN non-compliant demat
accounts shall also be "suspended for credit" other than the credits arising out of
automatic corporate actions. It is clarified that other credits including credits from
IPO/FPO/Rights issue, off-market transactions or any secondary market transactions
shall not be allowed into such accounts.

4. The Depositories are advised to:-
a) make amendments to the relevant bye-laws, rules and regulations for the
implementation of the above decision immediately, as may be
applicable/necessary ;
b) bring the provisions of this circular to the notice of their DPs and advising them to
also communicate the same to all the Beneficial Owners (BOs); and
c) disseminate the same on the website.

5. This circular is being issued in exercise of the powers conferred by Section 11(1) of
Securities and Exchange Board of India Act, 1992 and Section 19 of the
Depositories Act, 1996 to protect the interests of investors in securities and to
promote the development of, and to regulate, the securities market.

Harini Balaji
Deputy General Manager
022-26449372
email: harinib@sebi.gov.in