Market regulator Securities and Exchange Board of India has asked stock exchanges to report on whether brokers are ready to get their clients submit their Aadhaar card details by December 31, The Economic Times reported on Monday.
The Sebi wants to make Aadhaar card compulsory as part of the recently-amended Prevention of Money Laundering (Maintenance of Record) rules in order to crack down on those using the stock market to convert black money.
Currently, the permanent account number is the only document needed to trade. But there have been cases of fraudsters using duplicate permanent account numbers to launder money. Sebi’s move to make Aadhaar mandatory is expected to help curb it. Brokers, meanwhile, said they are preparing themselves for this but it would be a tedious task.