Broker identification deadline extended to June 30

In view of the representations received from various market participants and taking into account the extent of work and logistics involved in obtaining the Unique Identification Number (UIN), it has been decided that the notified date for the purpose of sub-regulation 1 of regulation 4 of the captioned Regulations would be June 30, 2004 instead of March 31, 2004. The necessary notification to this effect is being issued by the Securities Exchange Board of India.

Yielding to pressure from market participants, SEBI today extended the last date for obtaining unique identification numbers by them by three months to June 30.

The regulator had earlier set a deadline of March 31 for all market intermediaries and brokers to obtain a UIN and get biometric impressions of their index fingers and thumbs.

According to sources, there were long queues at various points of service (POS) appointed by National Securities Depository Ltd, which was entrusted with the task to create a central database of all market intermediaries.

In the first phase, the regulator had asked depositories, depository participants, stock exchanges and their members, merchant bankers, underwriters, registrars and transfer agents, mutual funds, collective investment schemes and portfolio managers, stock lending and credit rating agencies, debenture trustees, custodians, venture capital funds and investor associations to apply for the UINs before March 31.

NSDL sources said that as on March 30, only 2,778 corporate and 17,740 individuals had registered with various POS across the country against the targeted 70,000.

The Sebi circular of January 1 had asked not only all brokers but their spouses, dependent parents and dependent children to obtain the UINs.

However, a Delhi High Court order of March 19 had restrained the regulator from asking the kin of brokers not dealing in capital markets to apply for the UIN.

While this came as a big reprieve to the broking community, several market intermediaries too are agitated since the Sebi order requires all its employees to obtain the UIN.

A market intermediary said that there were too many unique identities which the government was assigning to individuals.

"We already have a voter identity card and a permanent account number (PAN), which are unique to each individual. There should be some co-ordination amongst various agencies of the government," he said. But none of the market intermediaries want to challenge the Sebi order and take on the regulator.

Sebi had issued the original circular in exercise of powers conferred under Section 11 (1) of the Sebi Act, 1992, to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.