Aadhaar-demat account linking: Sebi's diktat spooks overseas investors
It is not just domestic investors but also foreign portfolio investors (FPIs) who are grappling with the Securities and Exchange Board of India ’s (Sebi’s) diktat mandating linking Aadhaar with “all demat accounts”. In August, Sebi had directed the stock exchanges to cease the accounts of all the clients who failed to submit Aadhaar details by December 31. Prima facie, the circular appeared to be aimed at domestic investors. However, ambiguous wording has spooked FPIs, who have sought clarity from Sebi on whether the circular would be applicable to them too. “ FPIs, through their custodians, have written to Sebi, seeking clarity on the Aadhaar issue. The instructions issued by Sebi in this regard are not clear. We want the regulator to provide explicit exemptions so that there are no last-minute surprises,” said a source who has a direct knowledge of the development. Aadhaar is a unique-identity number issued to all Indian residents based on their biometric and demo...