Why is PAN number mandatory for me to open an account with Fincare services?

According to the Securities and Exchange Board of India (SEBI), the Permanent Account Number (PAN) has been made the sole identification number for all participants investing in the securities market / mutual funds, irrespective of the amount of investment. This is part of the revised know-your-customer (KYC) compliance norms currently in existence with fund houses, in order to comply with money laundering prevention rules. Association of Mutual Funds of India (AMFI) has asked mutual fund houses to comply with new KYC norms and collect PAN, address proof and photograph of all their new and existing investors with effect from January 1, 2011. The AMFI decision follows a direction from market regulator Securities and Exchange Board of India ( SEBI) earlier the same year to tighten KYC norms to check fraudulent practices. Though MF investors will face some additional paperwork now, the documentation would be centralised across all the fund houses with the help of PAN and this will benefit them in the long run. Hence, Fincare services collects your PAN card to link it to your investments and also to verify your KYC ( Know your Customer) information with CDSL.