Sebi extends PAN deadline for MF buys to Dec

With less than a week to go for the mandatory permanent account number (PAN) requirement for all new investments in mutual funds to take effect, the Securities and Exchange Board of India (Sebi) on Tuesday extended the deadline by six months to December 31, 2007.

But the regulator insisted that investors making new investments in mutual funds should produce proof that they have applied for PANs.

The mandatory requirement for PAN, the alpha-numerical tax assessment number, for mutual fund investments was to have come into effect from next Monday (July 2).

Sebi, however, exempted investors participating in micro-pension schemes from the PAN requirement.

"Sebi has extended the deadline till December 31, provided investors attach proof of their PAN application along with their mutual fund investment form. The idea is that investors without PANs should apply immediately for the mandatory compliance," said AP Kurian, chairman, Association of Mutual Funds in India.

Investors participating in the micro Systematic Investment Plan will also have to follow the PAN requirement from next year.

Under the know-your-client norms, PAN is currently mandatory for mutual fund investments of Rs 50,000 or above.