Monday, April 15, 2019

Nepse makes PAN mandatory for big share investors

Nepal Stock Exchange (Nepse) has made Permanent Account Number (PAN) mandatory for high-volume share investors from today in a bid to encourage transparency in the secondary market.
Earlier, Securities Boards of Nepal (Sebon) had directed Nepse to implement the provision of making PAN compulsory for traders conducting daily transactions of above Rs 500,000 from April 14 after consulting with the Inland Revenue Department (IRD). But the decision was revoked after the after stock investors' protest.
The capital market regulator has, however, said that the investor, who does transactions of below Rs 500,000 per day can voluntarily submit their PAN. "Its not mandatory for them," the regulator said, adding that submission of PAN will help the government to identify individuals and companies and track their source of money.
"It will promote transparency in the secondary market," the Nepse also said, adding that the provision will also help determine the exact number of large investors in the secondary market. "Based on the number of demat accounts, Sebon estimates that there are 1.5 million investors in the secondary market."
The investors are of the view that the mandatory PAN provision will hit number of transactions and trading volume. Finance Minister Dr Yubaraj Khatiwada, while presenting the government’s policies and programmes for the current fiscal year, had clearly stated that the PAN provision would be made mandatory for stock trading from this fiscal year.
According to chief executive officer of Nepse Chandra Singh Saud, submission of PAN will help the government to identify individuals and companies and in tracking the source of money, which will eventually promote transparency in the secondary market. 

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