The Securities and Exchange Board of India (SEBI) has mandated that existing demat and trading accounts must be KYC-compliant by June 30, 2022. If your demat account is frozen, the National Securities Depository Limited (NSDL) provides guidelines on how to unfreeze it.

How to unfreeze demat account after freezing due to KYC

The deadline for ensuring KYC compliance for current demat and trading accounts is June 30, 2022, as mandated by the Securities and Exchange Board of India (SEBI). An NSDL circular, dated March 25, 2022 (Circular No. NSDL/POLICY/2022/041), outlines the procedure for the suspension of demat accounts in case of non-compliance with six KYC attributes. A one-time extension until June 30, 2022, has been granted for existing demat accounts following discussions with other Market Infrastructure Institutions (MIIs) and SEBI.

Demat and trading account holders are required to update the following KYC attributes:

a) Name

b) Address

c) PAN

d) Valid mobile number

e) Valid email ID

f) Income range

Failure to meet these KYC requirements by the deadline will result in the deactivation of accounts. Non-compliant trading accounts will have their trading rights suspended, and non-compliant demat accounts will be frozen to prevent debits. The individual won't be able to trade on the stock market or transfer purchased shares until their KYC information is updated and approved.

To unfreeze a demat account after freezing due to KYC non-compliance, investors can follow these steps according to NSDL:

Provide the missing KYC information to the depository participant.

Once the information is updated in the depository system by the participant, the demat account will be unfrozen.

For trading accounts, the Exchange will unlock blocked accounts on the T+1 trading day after the stockbroker receives and updates the required information and obtains approval from the Exchange.

Investors are strongly advised to ensure compliance with KYC criteria for both trading and demat accounts to facilitate a smooth settlement process.

Download:

• Circular No. NSDL/POLICY/2022/041