Aadhaar-demat account linking: Sebi's diktat spooks overseas investors

Sebi directs freezing of all demat accounts not linked to Aadhaar by December 31

It is not just domestic investors but also foreign portfolio investors (FPIs) who are grappling with the Securities and Exchange Board of India’s (Sebi’s) diktat mandating linking Aadhaar with “all demat accounts”.

In August, Sebi had directed the stock exchanges to cease the accounts of all the clients who failed to submit Aadhaar details by December 31.

Prima facie, the circular appeared to be aimed at domestic investors. However, ambiguous wording has spooked FPIs, who have sought clarity from Sebi on whether the circular would be applicable to them too.

“FPIs, through their custodians, have written to Sebi, seeking clarity