Sebi must exempt Sikkim from PAN protocol

GANGTOK, July 25: Members of the Sikkim Chambers of Commerce (SCC) have urged the Securities and Exchange Board of India (Sebi) to exempt the people of Sikkim from the mandatory requirement of quoting Permanent Account Number (PAN) while making mutual fund investments. The government of India regulates the mutual fund investments in the country through the Sebi. "The mutual fund investments have given handsome returns to investors in the last one decade. More than 10,000 people are involved in this trade in the state," said the SCC president, Mr SK Sharda. He informed that the Sebi had recently made it mandatory for the prospective investors to quote permanent account number while making mutual fund investments. "This has created a problem for the Sikkim investors. Sikkim has its own income tax law, namely the Sikkim Income Tax Manual 1948. By asking for PAN, the Sebi has closed the doors for the Sikkim investors to make mutual fund investments," Mr Sharda, said. He added that hundreds of applications deposited with banks after 2 July this year have remained unprocessed, thus creating a confusion in the minds of the investors. "By asking for PAN cards, the Sebi has virtually barred the Sikkim investors from making mutual fund investments," Mr Sharda, said.