Your Demat Account Has Been Cancelled, If You Haven’t Added This Info In KYC: Check Full Details
Did you complete your KYC processes for your DEMAT account? If not, there’s a big possibility that your account has been deactivated.
News is that if your KYC for your DEMAT account is not completed before the deadline of 31 July, 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 alerted by the Central Depository Services Ltd (CDSL) and National Securities Depository Ltd (NSDL), if you have a DEMAT and/or trading account, you will need to make sure that your KYC has been updated. This includes details such as your name, address, PAN, valid mobile number, valid email ID, income range.
It was reported that if you don’t have Aadhaar, then there won’t be any DEMAT account. Bombay Stock Exchange (BSE) had also issued a circular regarding the same, wherein they have ordered 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 deactivation of the account.
Some other rules have also been put in place by the Securities and Exchange Board of India (Sebi). 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 the option of nomination. However, a trading account can also be opened without being nominated. If the investor doesn’t want a nominee, then they will have to convey this information to the SEBI.
If you already have a DEMAT account, the nomination form should be filled by March 31, 2022. And if there is no nomination, a separate ‘Declaration Form’ should be filled. Additionally, if the nomination or declaration form isn’t filled, then the account will be frozen.
The new rules also dictate that DEMAT and trading account holders will have provide a nominee, i.e., they will have to specify to whom the shares should be transferred to in case of death. You can also change the name of the nominee. A maximum of three people can be nominated in a DEMAT account. If the account holder names three or more nominees, the share of all the nominees will have to be decided.