PAN to replace MIN for all mutual fund transactions

Mumbai: The income tax permanent account number (PAN) will replace the mutual fund identification number (MIN), which was earlier this year made mandatory for mutual fund investments worth over Rs50,000, beginning March 2.

Presenting the union budget, finance minister P Chidambaram had proposed making PAN the sole identification number for all participants in the securities market. In effect, MIN has been scrapped and PAN will be the sole identification number for capital market transactions. PAN with prefix or suffix will replace MIN and other identification numbers for capital market transactions .

"MIN will be withdrawn from tomorrow and PAN will replace it as the sole identification number for mutual fund transactions from March 2," reports quoting Association of Mutual Funds of India chairman A P Kurien said.

"Investors need to have PAN number and other documents under the KYC (know your client) norms of the Prevention of Money Laundering Act," he said.

Those investors, who have already been allotted MIN, need not provide their PAN details afresh.

The Central Depository Services Ltd (CDSL), the country's second largest depository, had established a separate company for allotting MIN to investors. Over 1.8 lakh mutual fund investors are estimated to have already been allotted MINs under regulations implemented from January 2007 till now.