Merchant Bankers please note

Merchant bankers have been harrasing public issue applicants by forcing them to attach photocopies of PAN cards with the application forms. In most such cases the applicants have to return as they are not aware of such stipulation.

Thankfully, SEBI circular of 11th March 2008 has clarified that the practice of requiring public issue applicants to attach photocopies of PAN cards with the application form has not been mandated by SEBI and that the present SEBI (DIP) Guidelines only require the PAN number to be quoted in the application forms, irrespective of the size of the application.

SEBI has instructed Merchant Bankers to ensure that all collection agents/ centers /syndicate/ sub syndicate members etc., engaged in collecting application forms do not refuse to accept applications in the absence of photocopy of PAN card.