id you suddenly hear that you need a Unique Identification Number to buy and sell mutual funds? And the last day is March 31.
Don't panic just yet. There are two reasons why:
- You may not really need it.
- Even if you do, the date has been extended to December 31, 2005!
What is UIN?
The Unique Identification Number is the identification an investor needs to buy and sell shares or mutual fund units.
It is part of the Security and Exchange Board of India's attempt to create a database of all Market Participants and Investors called MAPIN.
What's good about this database?
Investors will gain access to basic information about an intermediary (like an agent or a broker).
If the intermediary is facing any disciplinary action from SEBI, this information will be available online.
Investors, though, will need their UIN to access this information.
Who needs a UIN?
An investor who is involved in a single transaction of Rs 1,00,000 or more will have to quote their UIN.
If you plan to be a prominent stock market player or a mutual fund investor and expect to deal with such huge amounts in the near future, you should get a UIN.
Is the UIN the same as PAN?
No. They are totally different. The Permanent Account Number is an identification number for filing your income tax returns.
How do you get a UIN?
1. SEBI has appointed the National Securities Depositories Ltd which, in turn, has appointed Points Of Service agents. Please visit the NSDL web site for a list of the POS agents.
2. You will need to visit the office of a POS agent. Make sure you take an appointment before you go. As part of the application process, your fingerprints will be scanned and a photograph taken.
3. You will have to fill in and submit an application form (there are separate ones for corporates and individuals). You can also download the form for an individual at the NSDL web site.
4. Take along a demand draft of Rs 300 drawn in favour of 'SEBI A/c MAPIN Database'. This is the registration fee.
5. Do read the application form carefully to ensure you have the right documents.
Take along the original and a photocopy of any one of these documents.
i. Proof of address:
- Passport
- Voter ID
- Driving license
- Bank passbook
- Rent agreement
- Ration card
- Flat maintenance bill
- Telephone bill
- Electricity bill
- Insurance policy
ii. Proof of identity:
- Passport
- Driving license
- Voter ID
- PAN card with photograph
