The National Securities Depository Limited (NSDL) on March 19, 2025, issued a circular related to the Suspension of Demat accounts of existing clients whose KYC records are not found to be valid by KRAs after the validation process.
A circular has been issued regarding the suspension of demat accounts of clients whose KYC records were invalid, particularly due to issues like invalid PANs, in the NSDL system. The accounts of clients with invalid KYC records updated in KRAs during January 2025 were suspended on March 1, 2025. Additionally, KRAs have provided a list of KYC records found to be invalid for new PANs updated between February 1, 2025, and February 28, 2025.
Based on this data, NSDL has identified the affected demat accounts and made the list available on the i-Assist portal under the "Non-Complied KYC KRA Accounts" section, with the file named “DPID_NonComplied_Non-Complied_KYC_KRA_Accounts_February_2025” for participants to review and follow up with their clients.
The demat accounts will be frozen by NSDL for “Suspended for debit and credit” on March 29, 2025 (Saturday) considering the updated data to be made available by KRAs as on March 28, 2025. Participants are advised to send intimation to aforesaid concerned clients after suspension of demat accounts via letter/email/SMS or any other mode as deemed fit.
[Circular No. NSDL/POLICY/2025/0035]
