As per Securities and Exchange Board of India (SEBI) Circular dated April 27, 2007, Permanent Account Number (PAN) has been made the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction, effective July 02, 2007.

This means that submission of copy of PAN card is mandatory for all investors (including NRIs) for investing with mutual funds with effect from July 02, 2007. Those investors not having a PAN card should apply for PAN immediately and applications for investment should be accompanied by evidence of having applied for PAN (acknowledgement copy of Form 49A). Such investors should, in addition, submit a declaration in Form 60/61 with address proof, if the investment is for a value of Rs.50,000 or more.
Non-completion of PAN formalities

Please note that effective July 02, 2007, all transaction without PAN verification / evidence of having applied for PAN (along with Form 60/61 where applicable) for all holders, including guardians, are liable to be rejected.