NSDL circular on -Suspension of demat accounts of existing clients whose KYC records are not found to be valid by KRAs after the validation process
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Issuer: NSDL
Attention of Participants is invited to Circular No.:NSDL/POLICY/2026/0010 dated January21,2026,regarding ‘Suspension of demat accounts of clients whose KYC records are not found to be valid by KRAs after the validation process’.
Pursuant to the aforesaid circular,demat accounts of the clients whose KYC records were not found to be valid due to various reasons [including invalid PANs for any reasons] for new PANs updated in KRAs system during the month of December2025 had been suspended in NSDL system on January31,2026.
In addition to the above,KRAs have provided the list of KYC records which are not found to be valid due to various reasons [including invalid PANs for any reasons] for new PANs updated in KRAs system during January01,2026 to January31,2026.
Based on the data made available by KRAs on February05,2026 for the said PANs which are KRA non-compliant,the DP wise demat accounts have been identified and the said list is made available by NSDL on E-pass portal on the path “Non-Complied KYC KRA Accounts” with the file name as “Non-Complied_KYC_KRA_Accounts_Jan_2026” for Participants review and taking up with their concerned clients.
The aforesaid demat accounts will be frozen by NSDL for “Suspended for debit and credit” on March07,2026(Saturday) considering the updated data to be made available by KRAs on March06,2026.Participants are also advised to send intimation to aforesaid concerned clients after suspension of demat accounts via letter/email/SMS or any other mode as deemed fit.
Further,for removal of suspension of aforesaid accounts,Participants are requested to follow the procedure mentioned at point no.5 & 6 of Circular No.:NSDL/POLICY/2023/0109 dated August18,2023.