Account holders who have not updated their KYC details yet have an additional three months to avoid deletion of their demat and trading accounts
Those holding demat and trading accounts have got a big relief. The Securities Exchange Board of India (Sebi) has extended the deadline for completing Know-Your Customer (KYC) for demat accounts and trading accounts by three months. The deadline for getting KYC done for existing demat and trading accounts has been extended till June 30, 2022.
If you have not done KYC of your demat-trading account, then now you have time till June 30. Earlier its deadline was 31 March 2022. In all the demat or trading accounts that are opened or are being opened after June 1, 2021, it is necessary to give six types of information. In these information, it is necessary to mention name, address, PAN, valid mobile number, earnings, correct email ID. Also, the Aadhaar number of the customers should be linked with their PAN.
NSDL said in the circular issued on 25 March 2022 that an order was issued to suspend the demat account without KYC. But based on discussions with MIIs and SEBI, this deadline has been extended one-time till June 30, 2022. During this period, the demat account holders who have not been able to do KYC of their demat account till now, they will have to get KYC done.
Get KYC done to avoid account suspension
To avoid deactivation of their accounts, many stockbrokers have started sending messages to their clients asking them to update the required KYC. As per the new extended deadline, account holders who have not updated their KYC details yet have an additional three months to avoid deletion of their demat and trading accounts
What will happen if KYC is not done
According to the rules, if an account holder does not update these information in the demat and trading account, then his account will be deactivated. The shares or portfolio that are already in his account will continue to be there, but will not be able to do any new type of trading. This account will be activated again only when the KYC details are updated in it.
All demat accounts are yet to be updated with six KYC norms. A demat/trading account holder is required to update these six KYC features. This includes name, address, PAN, valid mobile number, valid email ID and income range. All 6-KYC features have been made mandatory for new demat accounts opened with effect from June 1, 2021.
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