To ensure compliance with anti- money laundering rules, leading stock exchange BSE today asked mutual fund investors to submit PAN and Aadhaar by March 31, 2018, failing which their folios would be closed.
This follows the government's amending in June the Prevention of Money Laundering (Maintenance of Records) Rules with regard to collection of Aadhaar from clients.
Folios are numbers designated to individual investor accounts, though one investor can have multiple accounts.
"For existing mutual fund folios/accounts...and for folios/accounts opened thereafter up to February 14, 2018, investors need to submit their PAN and Aadhaar number with requisite documents latest by March 31, 2018, failing which, the mutual fund folio(s) would cease to be operational till the time the requisite details are submitted," the BSE said in a circular.
For new mutual fund's accounts opened from February 15, this year onwards, investors are required to submit their PAN and Aadhaar number, at the time of opening such folio itself, without which no new account would be opened.
The BSE - formerly known as Bombay Stock Exchange - runs mutual fund distribution platform BSE StAR MF.
In October, the exchange had asked its brokers to submit details about preparedness for furnishing Aadhaar details of their clients by month-end in order to ensure compliance with anti-money laundering rules.
In compliance with the PML norms, banks have already sought Aadhaar details from their customers.
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