With recent changes in the government policies, there is a possibility that Aadhaar card might be made as a mandatory document for market investment. Aadhaar is the master-key to get access into governmental transactions which once were never opened. In order to regulate the financial investment scenario in India, Aadhaar may soon become mandatory for buying shares and mutual funds.
It is in talks that Aadhaar information number will become a mandate to validate any financial transactions. Financial transactions being considered by the government and markets regulator SEBI will require Aadhaar card as a part of transaction document to promote an attempt to stop the flow of black money entering into the financial markets.
If we consider linking Aadhaar for buying mutual funds and market investments, the recommended move will probably impact those who use multiple PANs for investments, and those brokers who, in collusion with such people, invest illegal funds in markets. For the layman, it is unpropitious to make any major difference.
Though the government's judgment to make Aadhaar compulsory for income tax returns filing has turned questionable, the government has made it clear that it intends to replace PAN with Aadhaar.The reason being cited by the government is the issues with PAN, especially the duplicate numbers that being used to launder money by the tax cheats. Just last month, the government deactivated 11.44 lakh PANs for this reason.
Aadhaar card will validate each and every market and financial transactions before there comes any flow of cash into motion. Aadhaar card implications will cover almost all big time investors who consider cascading effect as a part of profit earning. Therefore to make Aadhaar mandatory in financial markets is positive and goes well with the government's battle to control black money generation.