India’s market regulatory body, the Securities and Exchange Board of India (Sebi) has extended the deadline for completing KYC compliance for Demat and trading accounts to June 30, 2022. The deadline was previously set for March 31, 2022, however, it has been extended by three months. As a result, numerous stockbrokers began sending notifications to their clients urging them to update the required KYC criteria.
Demat and trading accounts can now be made KYC compliant until June, which is a significant relief for the account holders.
KYC is mandatory to continue the account
SEBI (Securities and Exchange Board of India) has announced certain amendments to the rules for opening new trading and Demat accounts. According to the new rules, if you have a Demat account, you must KYC it by June 30, 2022. The Demat account will be deactivated if KYC is not completed.
You will be unable to trade on the stock market with this. Even if a customer buys stock in a company, the shares will not be able to be transferred to the account. This will only be done when the KYC has been completed and verified.
Information required
Every Demat account is required to enter six pieces of information to complete the KYC. These six KYC features must be updated by the holder of a Demat/trading account. Name, address, PAN, cellphone number, valid email id, and income limit are all included in the list. All 6-KYC features have been made necessary for new Demat account openings from June 1, 2021.
The penalty will now be levied for failing to connect Aadhaar-PAN
Not linking PAN to Aadhaar will now result in a penalty. Firstly, the penalty will be Rs 500 till 30 June 2022. Following that, a penalty of 1000 rupees must be paid. If a PAN number is not connected after March 31, 2023, the account will get deactivated.
