Mapin may be back soon

Mapin (unique identification number for market participants and investors) may get a fresh lease of life after a one-year gap, with the Securities and Exchange Board of India (Sebi) planning to resume registrations in a phased manner. The market regulator had suspended all Mapin registrations in July last year.

To begin with, the cut-off limit for obtaining the unique identification number with biometric impressions for natural persons will be raised from the existing limit of a trade order value of Rs 1 lakh to Rs 5 lakh or more.

In its annual report for 2005-06 released today, Sebi said, "The limit will be reduced progressively. For a trade order value of less than Rs 5 lakh, an option will be available to investors to provide either the permanent account number (PAN) of the income tax department, or UIN obtained under Mapin."

Investors in mutual funds would be exempted from the requirement of obtaining a UIN. Agencies capable of providing such facilities in a cost-effective manner would be assigned the responsibility of maintaining the database, the Sebi's annual report said.

A listed company, or a company that intends to get its securities listed, along with its promoters, directors, officers, and designated employees, will be required to obtain a UIN.

The Sebi (Central Database of Market Participants) Regulations 2003 had proposed the creation of a central database of market participants and investors, with unique identification numbers for them.