Stock Investors Must Update KYC before 31st December To Keep Using Demat & Trading Account
Moneylife Digital Team 06 December 2021
All investors in the stock market must update their know-your-customer (KYC) data before 31 December 2021 to keep using their demat and trading accounts, say bourses and depositories. 
 
In a message, the Bombay Stock Exchange (BSE) says, "All investors are requested to take note that as per regulatory guidelines, six KYC attributes, like name, permanent account number (PAN), address, mobile number, email ID and income range have been made mandatory. Update your KYC else; your demat and trading account will be made inactive."
 
 
According to bourses and depositories, this step is being taken as per guidelines issued by Securities and Exchange Board of India (SEBI) to protect investors' interest by sending alerts of various transactions in their accounts. 
 
"The last date to update KYC is on or before 31 December 2021. Thereafter, non-compliant demat and trading accounts will be liable to be made inactive, i.e., no debit transaction in demat account and no dealing in trading account shall be permitted till KYC is completed," the bourses and depositories say. 
 
As per the circular issued by SEBI in April 2021, National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) are required to ensure that six important KYC attributes are updated in the existing demat, and trading accounts. The six KYC attributes are mandatory for new accounts opened on or after 1 August 2021. 
 
Earlier in September 2021, the market regulator had extended the deadline for three months till 31 December 2021 for investors to make their demat and trading account KYC-compliant.
 
In a circular issued on 28 September 2021, NSDL stated, "Based on the representations received from participants and as per the discussion held with other market infrastructure institutions (MIIs, like stock exchanges, clearing corporations and depositories) and SEBI, it is decided to extend the abovementioned timeline for existing accounts by another three months, till 31 December 2021." 
 
The earlier deadline for investors to comply with KYC norms was 31 July 2021. However, due to the COVID-19 pandemic, it was extended twice, first up to 30th September and then up to 31 December 2021.
 
Stockbrokers and depository participants have been sending emails and letters to their clients, including demat and trading account-holders, to complete or update their KYC details before the expiry of the deadline to avoid deactivation of their demat or trading accounts.
 
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