No credit in demat a/cs without PAN details

Come August 16, demat account holders, who have not verified their permanent account number (PAN) details, will not be able to buy shares. Sebi has decided that PAN non-compliant demat accounts shall be ‘suspended for credit’. Currently, demat accounts, for which PAN details have not been verified, are suspended for debit, until the same is verified with the depository participant (DP). “It is clarified that other credits including credits from initial public offer/follow-on public offer/rights issue, off-market transactions, or any secondary market transactions shall not be allowed into such accounts,” says the circular.