SEBI Extends Deadline For KYC Compliance With Demat, Trading Accounts

The timeframe for satisfying know-your-customer (KYC) compliance for demat or trading accounts has been postponed by three months. From September 30, 2021, the Securities and Exchange Board of India (Sebi) has extended the deadline for establishing demat and trading accounts KYC-compliant to December 31, 2021.

The National Securities Depository Ltd (NSDL) published a circular on September 28, 2021, stating that "Based on the representations received from Participants and as per discussion held with other MIIs and SEBI, it is decided to extend the abovementioned timeline for existing accounts by another three months i.e. December 31, 2021. Participants are once again advised to take all possible measures so that the client accounts are compliant before the above mentioned timeline."

Owing to the Covid-19 epidemic, the scheduled deadline of July 31, 2021 was delayed until September 30, 2021. However, the timeframe has now been extended for the second time. Depositories like NSDL and Central Depository Services Ltd (CDSL) must verify six key KYC details in current Demat and trading accounts. Certain mandatory credentials, such as Name, Address, PAN, mobile number, email ID, and Income limit, must be updated by a demat or trading account holder.

Depositors who have not updated their KYC credentials even have now three months in their hands to avoid having their Demat and trading accounts terminated, according to the new extended deadline. Demat account holders must be aware that the above-discussed credentials must be confirmed for KYC compliance. The Demat account will remain inactive until the effective KYC compliance is done.