The demat and trading accounts lacking an updated KYC (know-your-customer) will be deactivated by July 31 i.e. today, according to the circulars by Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL).
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To avoid deactivation of their accounts, investors have been asked to provide their name, address, Permanent Account Number (PAN), valid mobile number, valid email ID, and income range.
As for the income range, investors have been asked to choose an income bracket from the following list:
For individuals (annual):
— Below Rs1 lakh
— Rs 1 lakh – Rs 5 lakh
— Rs 5 lakh to Rs 10 lakh
— Rs 10 lakh to Rs 25 lakh
— More than Rs 25 lakh
For non-individuals (annual):
— Rs 20 lakh
— Rs 20 lakh to Rs 50 lakh
— Rs 50 lakh to Rs 1 crore
— More than Rs 1 crore
Similarly, the PAN should be seeded with Aadhaar. The PAN will not be considered valid if it's not linked with the Aadhaar. Besides, separate mobile numbers and email addresses must be provided for all Beneficial Owner (BO) account holders, according to the circulars.
All six KYC details are mandatory for new accounts opened from June 1, 2021.
Meanwhile, SEBI (Securities and Exchange Board of India) has asked the CDSL and NSDL to verify that the aforementioned KYC details are updated. The market regulator had also asked the depositories to ensure that necessary communication is sent to their clients to update the KYC by May 31, 2021.
Given the circulars, several stockbroking firms have sent emails to their clients (demat/trading account holders) asking them to update their KYC details before July 31. Till the time these details are not provided, the pending demat and trading accounts will remain deactivated.
