On or before June 30, 2022, the Securities and Exchange Board of India (SEBI) has mandated that all demat account holders update their 6 mandatory KYC details (Know Your Customer) information. If you don’t update your KYC information before the deadline, your demat account may be cancelled. Not only would you be unable to gain access to it, but you would also be unable to buy or sell stocks on the exchange.
In an official statement, National Securities Depository Ltd (NSDL) stated: “Participants are reminded that if a client fails to update the 6 KYC attributes in their demat accounts by March 31, 2022, such demat accounts will be suspended (suspended for debit) by Participants until the deficient KYC attributes are updated in the NSDL system based on the client’s request. Name and address are already necessary fields in the NSDL system, and PAN non-compliant demat accounts are already suspended.”
The SEBI has issued a circular requiring the mandatory updating of six KYC information, in particular, before the due date. Are you curious about these 6 KTC specifics?
6 KYC details before April 1 to continue using your demat, trading accounts
Demat & Trading Account holders are recommended to take note of the following 6-KYC traits, which will be made mandatory:
According to the SEBI announcement, your name is one of the necessary KYC details that must be changed. However, because you provided your name when you opened your demat account, you can choose to keep it if there hasn’t been any change to your name, whether small or substantial. You must, however, alter your name in the depository database if there has been even a minor change in your name.
Again, the address is something you would have provided when you first opened your demat account. You can keep your current address if nothing has changed. However, if your address has changed after you opened your demat account, you should update your KYC information to reflect the new address.
Previously, it was not necessary to disclose your PAN in order to open a demat account. So, if you’re one of the people who registered a demat account without disclosing your PAN, now is the time to update it on the depository’s database because it’s now a must.
#4 Mobile Number
Your mobile phone number is critical information that must be kept up to current and recorded at all times. Any information or changes to your demat account will be promptly communicated to you through SMS to your mobile phone number. As a result, it’s critical to maintain it up to current at all times.
#5 Email ID
Your email address is another important piece of KYC information that has to be updated. On a regular basis, demat account statements and other information will be sent to your email address. As a result, having your email address on file with your depository is critical.
#6 Income Range
Finally, you’ll need to amend your depository’s record with your annual income range. Your income range is a crucial metric that fluctuates frequently. SEBI has mandated that this information be updated for this purpose.
According to the NSDL circular dated March 25, 2022, “NSDL will suspend such demat accounts in the eDPM system of Participants if any one or more of the KYC attributes, namely Mobile No., Email ID, and Income Range, are not updated (Out of these three attributes, either one OR two OR all three attributes are not updated). Participants are not required to take any action regarding the suspension of such KYC non-compliant demat accounts. Participants can get a list of such demat accounts on the NSDL I-assist portal under maker login with the file name (File-1 Anyone or more of KYC attributes not updated) for their reference “.
What happens if KYC is not updated?
According to an April 2021 circular, NSDL would suspend accounts when KYC attributes are not updated (any one, any two, or all attributes are not updated).
A person who has their account deactivated will be unable to trade on the stock market. Even if he purchases stock in a certain company, the stock will not be transferred to his account until the mandatory KYC qualities are updated and verified.
Name and address are the only mandatory KYC criteria in the NSDL system, and accounts with non-compliant PANs have already been suspended.
As a result, you should now be aware of the six KYC details that must be updated on your demat account before the June 30, 2022 deadline. If you haven’t already done so, you should do so as soon as possible to avoid being deactivated.