As per a circular issued by the National Securities Depository Ltd (NSDL) on September 28, 2021, “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.”
The original deadline was July 31, 2021, which was extended to September 30, 2021 due to the Covid-19 pandemic. This is the second time that the deadline has been extended.
ET OnlineET OnlineUpdating KYC details
As per the circular issued by Sebi in April 2021, the depositories, i.e., NSDL and Central Depository Services Ltd () are required to ensure that six important KYC attributes are updated in the existing demat, trading accounts.
A demat, trading account holder is required to update the following KYC attributes:
a) Name
b) Address
c) PAN
d) Valid mobile number
e) Valid email ID
f) Income range
Further, the above-mentioned six KYC attributes are mandatory for new accounts opened on or after August 1, 2021.
If the deadline had not been extended and the KYC attributes were not complied with, then the account would have become deactivated. Further, an individual would not be able to trade in the stock market. Even if an individual buys shares of a particular company, these shares could not have been transferred to his/her account, till the time KYC attributes were updated and verified.
Many stockbrokers have been sending communications to their clients to update the required KYC attributes to avoid getting their accounts deactivated. Now with an extended timeline, account holders who have yet not updated their KYC details now have an additional three months to avoid getting their demat and trading accounts deactivated.
Demat account holders should keep in mind that mobile number and email ID for KYC compliance have to be verified. Till the time mobile number and email ID are not verified, the demat account will remain under ‘Pending for Activation’. Stock brokers will not activate the demat account till the time mobile number and email ID are verified. This is done so as to ensure that timely communications can be sent to the investor.
