MANU/SDER/0004/2021

Ministry : Securities and Exchange Board of India

Department/Board : Commodity Derivatives Market Regulation Department

Circular No. : SEBI/HO/CDMRD/DNP/CIR/P/2021/30

Date : 08.03.2021

Notification/ Circulars Referred : Circular no. SEBI/HO/CDMRD/DMP/CIR/P/2016/87 dated September 16, 2016 MANU/SCOG/0003/2016

Citing Reference:
Circular no. SEBI/HO/CDMRD/DMP/CIR/P/2016/87 dated September 16, 2016 MANU/SCOG/0003/2016  Referred

The Managing Directors / Chief Executive Officers
All Recognized Stock Exchanges and Clearing
Corporations having Commodity Derivatives Segment

Sir/Madam,

Amendments to provisions in SEBI Circular dated September 16, 2016 on Unique Client Code and mandatory requirement of Permanent Account Number

1. SEBI had issued circular no. SEBI/HO/CDMRD/DMP/CIR/P/2016/87 dated September 16, 2016 which, inter-alia, provided guidelines on use of Unique Client Code (UCC) and mandatory requirement of Permanent Account Number (PAN) for trading on commodity derivative exchanges (now referred as Exchanges having commodity derivatives segment).

2. In the Union budget 2020, launch of instant PAN facility was announced and subsequently, Income Tax (IT) Department launched the facility of e-PAN which is generated instantly through Aadhaar based e-KYC.

3. In order to rationalize the compliance requirement of collecting and maintaining copies of PAN of clients by their respective members and enhance the use of e-PAN, it has been decided to modify certain provisions of SEBI circular dated September 16, 2016 which are as follows:

3.1 Clause 3 of the Circular is modified as under:

"It shall be 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 exch........