According to the circular issued by Securities and Exchange Board of India (SEBI), it would be mandatory for the members of the exchanges, having commodity derivatives segment, to use Unique Client Code (UCC) for all clients transacting on the commodity derivative segment.
Accordingly, members need to collect after verifying the authenticity and maintain in their back office the copies of Permanent Account Number (PAN) issued by the Income Tax (IT) Department, for all their clients.
The exchanges, need to ensure that their members collect copies of PAN cards issued to their existing as well as new clients after verifying with the original, cross-check such details collected from their clients with the details on the website of the Income Tax (IT) Department.
While, in case of e-PAN, members need to verify the authenticity of e-PAN with the details on the website of IT Department and maintain the soft copy of PAN in their records.
Further, such members need to upload details of PAN or e-PAN so collected to the exchanges as part of Unique Client code, verify the documents with respect to the unique code and retain a copy of the document.
The provisions of this circular would come into effect from 1st April, 2021.