According to an NSDL circular, “NSDL vide its circular no. NSDL/Policy/2022/041 dated March 25, 2022 has informed about the procedure for suspension of demat accounts in case of non-compliance. KYC Property. Based on the discussions held with other MIIs and SEBI, it has been decided to give one-time extension to existing demat accounts till June 30, 2022.”
A demat, trading account holder is required to update the following KYC features:
a name
b) address
c) pan
d) Valid mobile number
e) Valid Email ID
f) Income Limit
The account will be deactivated if the KYC requirements are not met before the deadline. After the deadline the trading rights of non-compliant trading accounts will be suspended by the Exchange. Non-compliant demat accounts will be frozen to prevent the depository participant or debit from the depository. A person will not be able to trade even in the stock market. Even if someone buys stock in a certain company, the shares will not be transferred to their account until their KYC information is updated and approved.
How to unfreeze demat account after it is frozen due to KYC
Here’s how you can unfreeze your demat account, as per NSDL:
Once the investor provides the missing KYC information and the same is noted in the depository system by the depository participant, demat account Won’t be frozen.
The blocked trading accounts will be unlocked by the exchange on T+1 trading day after the stockbroker receives the necessary information, updates the same in the exchange system and obtains approval from the exchange.
investors It is urged to ensure that trading and demat accounts are KYC compliant to ensure a smooth settlement.