kyc: You will not be able to use demat, trading account from April if these 6 KYC details are missing

Must read

Depositories have asked investors with demat or trading accounts to complete their know-your-customer (KYC) updation by March 31, 2022. If they do not comply, their accounts will be made inactive.

National Securities Depository Ltd (NSDL) in its latest circular stated: “Participants are requested to note that in case where client fails to update the 6 KYC attributes viz Name, Address, PAN, valid Mobile No., valid Email ID and Income range in their demat accounts by March 31, 2022, such demat accounts need to be suspended (suspended for Debit) by Participants until deficient KYC attributes are updated by Participants in NSDL system based on the client request. Out of the mandatory 6 KYC attributes, name and address are already mandatory field in NSDL system and PAN non-compliant demat accounts are already in suspended status.”

According to an April 2021 circular, “All Participants are advised to note that 6-KYC attributes shall be made mandatory for all the categories of clients and the same has been decided in consultation with all MIIs and SEBI.”

NSDL and Central Depository Services Ltd (CDSL) are required to ensure that six important KYC attributes are updated in the existing demat, trading accounts.

A demat, trading account holder is required to update the following KYC attributes:

a) Name

b) Address

c) PAN

d) Valid mobile number

e) Valid email ID

f) Income range

All 6-KYC attributes are made mandatory for new accounts opened from June 1, 2021.

If the KYC attributes were not complied with before the deadline, then the account will become deactivated. Further, an individual will not be able to trade in the stock market. Even if an individual buys shares of a particular company, these shares will not be transferred to his/her account, till the time KYC attributes are updated and verified.

When demat account will be suspended

For demat accounts wherein any one or more of KYC attributes is not updated i.e. Mobile No., Email ID and Income Range (Out of these 3 attributes, either any one OR any two OR all three attributes are not updated), NSDL will suspend such demat and no action w.r.t. suspension of demat account is required to be taken by the Participants for such KYC non-compliant demat accounts, according to the circular.

The list of such demat accounts is made available to Participants for their reference on NSDL I-assist portal under maker login with file name as ‘File-1_Anyone or more of KYC attributes not updated’

Non-compliant demat accounts will be rendered inactive, meaning that no debits will be permitted except for the settlement of existing open positions.

Demat account holders should be aware that KYC compliance requires them to verify their mobile number and email address. The demat account will be marked as ‘Pending for Activation’ until the cellphone number and email address have been validated. The demat account will not be activated until the mobile number and email address have been validated by the stock broker. This is done so that the investor can receive timely communications.

Source link

More articles

- Advertisement -


BLinC Invest Closes Its Second Fund With A Corpus Of INR 100 Cr

The fund will invest in early-stage edtech and fintech startups and help them scale their businesses The fund will make five to seven investment...
- Advertisement -

Latest article