The Hindu : Business : PAN not furnished for 25 lakh demat accounts

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Thursday, Aug 09, 2007
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Business

PAN not furnished for 25 lakh demat accounts

Special Correspondent

NEW DELHI: Even as stock market trading in over 25 lakh demat accounts without permanent account number (PAN) stands suspended for over seven months, the investors are yet to furnish the necessary details required for regularisation.

The latest data available with National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL), the two leading depositories, reveal that 25.4 lakh demat accounts still remain suspended owing to non-compliance of PAN details. At this level, it works out to nearly 60 per cent of the 44 lakh accounts that stand frozen with effect from January 1, 2007. Interestingly, out of these frozen accounts, over 11 lakh accounts have some shares in their portfolio, although it marks a decline from more than 20 lakh such accounts at the beginning of the year. Those without any shares in their portfolios number nearly 15 lakh as compared to 23 lakh such accounts at the commencement of the suspension exercise.

Accordingly, while the number of suspended accounts with shares in their portfolio has declined by about 45 per cent, those without any balance has shrunk by 35 per cent. At present, the two depositories maintain a total of more than 105 lakh demat accounts, up from nearly 99 lakh at the beginning of this year.

However, the total number of active accounts, with the investors having provided the PAN details, is only about 80 lakh currently as compared to about 55 lakh when the suspension exercise began.

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