Document dated Nov. 3, 2023, received from IND NSD Nov. 6, summarized on Nov. 7.
Details
KYC registration agencies (KRAs) have provided updated list of KYC records not found to be valid due to various reasons, including unlinked PAN with Aadhar, up to Aug. 31.
List of non-compliant demat accounts associated with invalid KYC records is available on the NSD i-Assist portal under the file name non-complied KYC KRA accounts.
Effectiveness
IND NSD plans to consider the updated data made available by KRAs as on Nov. 23, 2023, and will suspend non-compliant demat accounts on Nov. 25, 2023.
Dec. 2023 Suspension Date
On Dec. 1, 2023, IND NSD said debit and credit transactions for suspended demat accounts will be halted on Dec. 9, 2023, using updated data from KRAs as of Dec. 7.
Participants are to inform affected clients re the suspension; to remove suspension, participants should follow the procedure outlined in Aug. 18, 2023 circular, #95503.
Feb. 2024 Further Suspension Date
On Feb. 16, 2024, IND NSD said debit and credit transactions for suspended demat accounts will be halted on Feb. 24, 2024, using updated data from KRAs as of Feb. 22.
Participants must inform affected clients re the suspension; to remove suspension, participants should follow the procedure outlined in Aug. 18, 2023 circular, #95503.
Mar. 2024 Suspension
On Mar. 18, 2024, IND NSD said that, as per circulars above, demat accounts of the clients whose KYC records were not found to be valid due to any reason (updated to Jan. 31, 2024) had been suspended in NSD system on Feb. 24, 2024.
KRAs have provided the list of KYC records which are not found to be valid due to various reasons for new PANs updated in KRA system during Feb. 1 to 29, 2024.
Re PANs which are KRA noncompliant, DP wise demat accounts have been identified and published on NSD portal for participants review and taking up with their clients.
These demat accounts will be suspended by NSD for debit and credit on Mar. 30, 2024 considering the updated data to be made available by KRAs as on Mar. 28, 2024.
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.
Document dated Mar. 18, 2024, received from IND NSD Mar. 20, summarized Mar. 25.
Apr. 2024 Non-compliant KYCs
On Apr. 23, 2024, IND NSD issued circular to notify participants about the suspension of demat accounts for clients whose KYC records are found invalid by KRAs.
KRAs have provided a new list of invalid KYC records during Mar. 1 to Mar. 31, 2024.
IND NSD made list of affected demat accounts available on i-Assist portal on Apr. 5; demat accounts identified as KRA non-compliant will be suspended on May 4, 2024.
