KYC Deadline for Demat Accounts Extended Till June 

The Securities and Exchange Board of India (Sebi) has extended to June 30, 2022, the deadline for making current demat and trading accounts KYC-compliant.

The deadline for completing KYC compliance for demat and trading accounts has been extended by nearly three months.

“NSDL advised about the procedure for suspension of demat accounts in case of non-compliance with 6 KYC qualities via its Circular No. NSDL/POLICY/2022/041 dated March 25, 2022,” according to the NSDL circular. Following discussions with other MIIs and SEBI, it has been decided to provide current demat accounts a one-time extension until June 30, 2022.”

Many stockbrokers have begun sending notifications to their clients requesting them to update the required KYC criteria in order to avoid their accounts being canceled. According to the new extended timeline, account users who have not updated their KYC details yet have an additional three months to avoid having their demat and trading accounts terminated.

If the deadline had not been extended and the KYC attributes had not been fulfilled, the account would have been deleted. A person would also be unable to trade on the stock exchange. Even if a person buys shares in a company, the stock cannot be transferred to his or her account until the KYC information is updated and approved.

Participants are notified that it has been a long time since they were urged to proactively obtain the six KYC criteria. However, the six KYC rules have not yet been applied to all demat accounts.

The following KYC attributes must be updated by a demat or trading account holder:

• Name
• Address
• PAN
• Working phone number
• Working email address
• Income range

From June 1, 2021, all six KYC qualities will be required for new accounts.