When beginning to trade in the stock market, many people wonder, “Can I invest in stock market without PAN Card?” Are you the one among them? If yes, do not fret!
Here we are to help you with the answer that helps you in getting a clear idea of how to start your investment journey.
In India, PAN is important for the individuals as well as organizations. It is not essential for the Income Tax to know the tax money but for the investments too.
So, yes PAN CARD is necessary if you are thinking of investing in stock!
Apart from this, PAN is very much essential to get a Know Your Customer (KYC). KYC is mandatory for investing in stocks and mutual funds.
If you are investing for the first time then it is important that your KYC has been done.
This means that every time you are investing with the new fund organization, you have to do the KYC with that organization and need to give the self-attested copy of the PAN Card to them.
Even your minors have to give in the PAN Card to the funds organizations you are investing in.
The people who are Non- residents and planning to invest in India also have to offer the PAN card.
In the case if the investor invested in some stocks a few years back when the PAN was not compulsory then you need to submit the copy of PAN with the original copies to get verified it now.
If you don’t provide the PAN Card, then unfortunately you won’t be able to continue with the further investments in the stock market.
The rule of having a PAN Card is important for the investors who are not paying any taxes and willing to invest.
If any of you does not carry any PAN Card yet then you should apply for the one because it is important for other important purposes too.
Investors from Sikkim are excused from offering the PAN Card while investing in 2008 by the Securities Exchange Board of India. But they have to provide any other proof for their residents of Sikkim.
Conclusion
In the end we can say that if you are thinking of how to invest in stocks without having a PAN Card then the answer is a big NO.
You need to have a PAN card if you are planning to invest in the mutual funds or stock market. If the investors don’t have a PAN , they can apply for the one and continue with their investments with the Asset Management Company.
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