An Indian trading firm I'm employed with has asked PAN details of my parents, could they misuse it ? They've said that SEBI requires them the PAN details of the Parents.
2 Answers
One of my friends worked in a trading firm in India & he was asked to provide the pan card of all the family members who were in his Ration Card (i.e. residing at the same address) including his parents & wife. This is used to prevent insider trading.
It is pretty difficult to answer this without more details. The following are few of the many genuine reasons you are being asked to give their PAN:
If you are not 18 years old, you cannot sign contracts in India , which you need to do so in order to trade or invest. Your parents will have to sign off on your behalf in order for you to trade and/or invest. In this case, there is a genuine reason for their PAN being asked for.
You have designated one or both of them as nominees. In my experience, some investments firms and AMCs ask for the PAN of nominee(s). This could be another reason that they are asking for it.
This being said, only you know the exact scenario in which you are being asked to divulge this information.
