The National Securities Depository Limited (NSDL) on June 25, 2026, issued a circular regarding the suspension of demat accounts of existing clients whose KYC records are not found to be valid by KRAs after the validation process.
The following has been stated:-
•NSDL has informed participants that demat accounts of clients whose KYC records are found invalid by KRAs, including cases involving invalid PANs, will be frozen for both debit and credit transactions from July 04, 2026.
•The list of affected accounts for PANs updated during May 2026 has been made available to Depository Participants (DPs) on the E-pass portal for review and follow-up.
•Participants are required to notify the concerned clients through appropriate communication channels after the suspension.
•The suspension can be revoked by following the procedure prescribed in NSDL Circular dated August 18, 2023.
[Circular No.: NSDL/POLICY/2026/0093]
