The Securities and Exchange Board of India (Sebi) has extended the deadline for establishing existing demat and trading accounts KYC-compliant to June 30, 2022.
The deadline for completing know-your-customer (KYC) compliance for demat and trading accounts has been extended by almost three months.
As per the NSDL circular, “NSDL vide its Circular No. NSDL/POLICY/2022/041 dated March 25, 2022 informed about the procedure for suspension of demat accounts in case of non-compliance with 6 KYC attributes. Based on the discussion held with other MIIs and SEBI, it is decided to give a one-time extension for existing demat accounts till June 30, 2022.”
To prevent having their accounts deactivated, many stockbrokers have begun sending communications to their clients asking them to update the required KYC qualities. Account holders who have not updated their KYC details yet have an additional three months to avoid having their demat and trading accounts deleted, according to the new extended timetable.
The account would have been deactivated if the deadline had not been extended and the KYC attributes had not been completed. Furthermore, a person would be unable to trade on the stock market. Even if a person purchases stock in a corporation, the stock cannot be transferred to his or her account until the KYC attributes have been updated and verified.
Participants are notified that a significant amount of time has passed since they were encouraged to gather the six KYC qualities proactively. All demat accounts, however, have not yet been updated with the six KYC criteria.
A demat, trading account holder is required to update the following KYC attributes:
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.