This week in Indian law: SEBI mandated PAN-Aadhaar linkage for all physical securities holders with a 31 March deadline, and the Supreme Court directed courts across India to relax bail bond requirements for undertrial prisoners unable to furnish surety. The global banking crisis triggered by SVB's collapse raised questions about Indian banking system resilience. 2 significant legal developments this week across securities-market and criminal-law.
Top story
SEBI Mandates PAN-Aadhaar Linkage for Physical Securities Holders
Category: securities-market | Date: 16 March 2023 | Source: SEBI
SEBI issued a circular mandating that all holders of physical securities (shares, debentures, units) link their Permanent Account Number (PAN) with Aadhaar by 31 March 2023. Failure to comply will result in freezing of folios, rendering holders unable to transact, receive dividends, or participate in corporate actions. The circular implements the Income Tax Act requirement for PAN-Aadhaar linkage in the securities market context.
Why it matters: Millions of holders of physical securities, particularly small investors and deceased account nominees, face folio freezing if they fail to comply by the deadline. Securities lawyers should immediately advise clients holding physical certificates.
Read more: Veritect analysis
Court judgments
SC Directs Courts to Relax Bail Bonds for Undertrial Prisoners
Court: Supreme Court of India | Date: 15 March 2023
The Supreme Court issued comprehensive directions to all courts across India to relax bail bond requirements for undertrial prisoners who are unable to furnish surety. The Bench noted that over 5,000 undertrial prisoners remain incarcerated despite having been granted bail, solely because they cannot meet the financial conditions attached to bail orders. The Court directed that personal bonds with reasonable sureties, or personal bonds without sureties in appropriate cases, should be accepted.
Key point: Courts must not convert bail into a wealth-based privilege; the inability to furnish surety alone cannot justify continued incarceration of a bailed undertrial.
Also this week
- Global banking crisis — Silicon Valley Bank collapse and Credit Suisse crisis dominate global financial news; RBI issues reassurance on Indian banking system stability.
- Budget session continues — Finance Bill 2023 nearing passage; Competition Amendment Bill debate ongoing.
- Adani-Hindenburg — SC proceedings continue; expert committee formation pending.
Looking ahead
- March 22: NCLT expected to hear significant moratorium enforcement matters.
- March 29: Competition Amendment Bill expected to pass Lok Sabha.
- March 31: End of FY2022-23; Finance Act assent; multiple SEBI compliance deadlines.
This is the Veritect Weekly Legal Roundup for Week 11 of 2023. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.