New Delhi: Demat and trading account holders have been advised by depositories to complete their know-your-customer (KYC) details by 31 July 2021. Failure to do so would result in the deactivation of their accounts, warns Central Depository Services Ltd (CDSL) and National Securities Depository Ltd (NSDL).
If you have a demat and/or trading account, then do ensure that all your KYC details including income range, mobile number, email ID etc. are up-to-date/provided in the account.
Many stockbroking firms/Depository participants have been emailing letters to their clients i.e. demat/trading account holders, to complete/update their KYC details before the expiry of the deadline to avoid deactivation of their demat/trading accounts.
As per circulars issued by both CDSL and NDSL in April 2021, certain KYC attributes must be updated mandatorily before 31 July 2021. These include name, address, Permanent Account Number (PAN), valid mobile number, valid email address, and income range.
All these six fields have been made mandatory for new accounts opened from 1 June 2021.
If these details are not updated, then your Demat account will be deactivated by the depository and will not be activated till you update these details.
As per emails sent by the Stockholding Corporation to their clients if KYC details with regards to PAN is to be updated, then one should ensure that their PAN is linked with Aadhaar in the income tax database. Similar emails have been sent to their clients by ICICI Bank Demat Services.
Separate mobile numbers and email addresses have to be provided for all Beneficial Owner (BO) account holders. However, after submitting a written declaration, BO can update the mobile number and email addresses of its family members. Family for this purpose has been defined as self, spouse, dependent parents, and dependent children.
If the same mobile number or the email ID is captured in more than one Demat account and the family flag is also not updated, participants shall be required to send 15 days notice to such Demat account holder for submitting mobile number/email ID modification form or request letter for updating the same or family flag declaration.
With regards to the income range, account holders have been asked to choose and specify as to which income range their income falls in from a list given in the email. The list of income ranges from which account holders have to choose, as per the email, are:
For individuals (annual):
a) Below Rs1 lakh
b) Rs1 lakh – Rs5 lakh
c) Rs5 lakh to Rs10 lakh
d) Rs10 lakh to Rs25 lakh
e) More than Rs25 lakh
For non-individuals (annual):
a) Rs20 lakh
b) Rs20 lakh to Rs50 lakh
c) Rs50 lakh to Rs1 crore
d) More than Rs1 crore
Failure to comply will result in the classification of such accounts as non-compliant accounts.