SEBI vide their circular dated October 25, 2002 has directed all the exchanges to de-activate the Trading terminals of their members who have not yet implemented the provisions of Unique Client Code as prescribed in their earlier circular dated July 18, 2001.

In this connection, SEBI in their circular dated July 18, 2001 had stipulated that brokers would use Unique Client Codes for all clients for which purpose the members were required to collect and maintain in their back-office the Permanent Account No. (PAN) allotted by the Income Tax Department for all their clients. The sub-brokers were also similarly required to do the same for their clients. It was also provided that where an individual client does not have PAN, such a client was required to give a declaration to that effect. In such an event, until the PAN is allotted, such client was required to furnish Passport No. and place & date of issue. In case, the client does not have a PAN or Passport, such client was required to furnish Driving License No., place & date of issue. If none of the above were available, the client was required to give his Voter ID No. The brokers were required to furnish the above particulars of their clients to the stock exchanges / clearing corporations and the same were required to be updated on a quarterly basis. The above requirement was made applicable for the clients having order value of Rs. 1 lakh or more w.e.f. August 1, 2001.

The Bombay Stock Exchange (BSE) has intimated all members that the trading terminals of those who fail to comply with the said requirements would be de-activated w.e.f. October 31, 2002.

October 28, 2002