Mumbai: It seems the government wants to take its battle against black money and tax evasion a step farther. After making Aadhaar compulsory for many schemes and projects, the government now plans to make it mandatory for stock market investors.
Soon, the 10-digit unique identity issued by the Unique Identification of Authority of India may be made compulsory for stock market investors, as market regulator Securities and Exchange Board of India and the government are planning to put in place a mechanism that will prevent black money from coming into stock market.
The proposal aims at preventing black money from coming into stock markets, as it is suspected that some investors convert their unaccounted wealth into white through stock market investments. It has also been suspected that the practice of tax evasion also takes place through such investments.
A report in The Economic Times quoted two people familiar with the development as saying that the government has now realised the importance of linking Aadhaar with transactions at the financial markets. It now also firmly believes Permanent Account Number or PAN may not be enough to plug tax leaks.
The report also quotes an unknown top official at a financial services firm who says that officials at Sebi have informally consulted a few market intermediaries and have sought their opinion on the proposed plan. However, it was not made clear whether Aadhaar will replace PAN card as the sole important document required for all securities transactions.
The government has made linking of Aadhaar with PAN compulsory for filing income tax returns, earlier only PAN card was required for filing taxes. Aadhaar has also been made mandatory for opening bank accounts or connecting the card with the existing accounts.