Have you completed the KYC process for your DEMAT account? If not, there’s a big possibility that your account has been deactivated.
If KYC for your DEMAT account is not completed before July 31, 2021, your DEMAT account will be deactivated.
Some more rules have also been stated by the SEBI, and failure to comply will also result in freezing or deactivation of accounts. Read on to find out all the details!
Complete Your KYC Or Demat Account Will Be Deactivated
As reported by the Central Depository Services Ltd (CDSL) and National Securities Depository Ltd (NSDL), if you have a DEMAT and/or trading account, you need to ensure that your KYC has been updated. You need to provide details such as your name, address, PAN, valid mobile number, valid email ID, and income range.
If you do not have Aadhaar, then you will not have a DEMAT account. A circular from the Bombay Stock Exchange (BSE) regarding the same directed all DEMAT account holders to link their accounts with Aadhaar.
The deadline for this was announced as July 31, 2021, and failure to follow through will result in the deactivation of the account.
Securities and Exchange Board of India (Sebi) has also adopted other rules. These are regarding the nomination that will be applicable from October. As per the circular issued by SEBI, new trading and DEMAT accounts should be activated by all trading members and depository participants from October 1. This can be done after they get the nomination form. Account-holders will have to sign the nomination forms and the declaration forms.
Nominee Needed, Declaration Forms To Be Filled?
The rules have also stated that the people opening new trading and DEMAT accounts will also get a nomination. However, a trading account can also be opened without being nominated. If the investor doesn’t want a nominee, they will have to convey it to the SEBI.
The nomination form should be submitted by March 31, 2022, if you already have a DEMAT account. In the absence of a nomination, a ‘Declaration Form’ should be filled out. In addition, if the nomination or declaration form is not filled out, the account will be frozen.
The new rules also require DEMAT and trading account holders to designate a nominee, i.e., to specify to whom the shares should be transferred in the event of death. You can also change the nominee’s name. DEMAT accounts can be nominated by a maximum of three people. It will be necessary to determine the shares of all nominees if the account holder names three or more nominees.