Depositories have urged investors with demat or trading accounts to complete their know-your-customer (KYC) process by March 31. In case individuals fail to comply, their accounts will be suspended and made inactive.
Individuals with demat or trading accounts are requested to update the following 6 KYC attributes before March 31:
All 6-KYC attributes are made mandatory by all Market Infrastructure Institutions (MIIs) and SEBI for all existing accounts. The NSDL and Central Depository Services Ltd (CDSL) will ensure that six important KYC attributes are updated in the existing demat, trading accounts of all participants.
What happens if KYC is not updated?
For accounts wherein KYC attributes are not updated (any one or any two or all attributes are not updated), NSDL will suspend them, according to an April 2021 circular.
An individual with a deactivated account will not be able to trade in the stock market. Even if he/she buys shares of a particular company, these shares will not be transferred to his/her account, until the mandatory KYC attributes are updated and verified.
Out of the six mandatory KYC attributes, name and address are already mandatory fields in NSDL system and accounts with non-compliant PAN are already suspended.
