This July , officials in the Finance Ministry have made it mandatory for investors taking the mutual fund route to furnish their PAN – Permanent Account Number for even a investment as low as Rs 50. Most of the investment these days is coming from smaller cities and towns where people are taking the SIP route to build their nest.
So what happens now ? After July-2007, deadline your fresh investments will be subject to providing PAN. Few months later, even investors with inactive folios where they hold Mutual Fund units will also have to furnish PAN or else their units will be frozen. Recall what happened to DEMAT accounts where PAN was not furnished.
India currently has 3% of it its investors in Mutual Funds, i.e 30 Million or 3 crore.