In the event of non-compliance with KYC details, demat account holders should be notified that their demat account would be suspended as of 1st April 2022. The deadline for investors to make their demat account completely KYC compliant is March 31, 2022. In the event of non-compliance with KYC standards, a demat account will be labeled inactive, and no transactions will be permitted.
National Securities Depository Ltd (NSDL) in an official statement has said "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 NSDL, 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.
Participants are advised to take note of the details of 6-KYC attributes shall be made mandatory as mentioned below:
- Valid mobile number
- Valid email-id
- Income range
On 17th March 2022, NSDL has said in a circular that "The demat accounts where the clients have not updated all the 6 KYC attributes, such demat accounts will be frozen for debits under Freeze reason code - 37 (Non Compliant - 6 KYC Attributes) at EOD of March 31, 2022. Participants are also advised to inform such clients that if they have any debit transactions to be executed in respect of Pay-ins scheduled after March 31, 2022 viz., account transfer and inter depository transfer, they shall execute such instructions for transferring securities well in advance but before EOD of March 31, 2022 to avoid the risk of non-delivery for sell trades of March 30, 2022 and March 31, 2022."
According to the circular issued by NSDL on 25th March 2022 "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 accounts in eDPM system of Participants 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. 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)".