Investors with demat accounts or buying and selling accounts have been suggested by depositories to finish their know-your-customer particulars by July 31. Failure to take action would end in deactivation of their accounts.
Circulars issued by depositories – National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) – on April 7, 2021 and April 5, 2021, respectively laid down that six KYC parts are obligatory for accountholders.
These six parts embody: title, handle, Permanent Account Number (PAN), legitimate cell quantity, legitimate electronic mail ID, and revenue vary.
All six KYC attributes have been made obligatory for brand new accounts opened from June 1, 2021. For all current accounts, depositories had been requested by market regulator SEBI to confirm that each one six KYC attributes are up to date and, wherever required, vital communication is distributed to their purchasers to replace the identical on or earlier than May 31, 2021.
For PAN, the circulars famous that the requirement of obligatory submission of PAN by purchasers for transactions within the securities market shall proceed to use, with permitted exemptions. Investors have requested to confirm their PAN on-line through the Income Tax web site.
In case PAN shouldn’t be seeded with Aadhaar earlier than the date specified by the federal government, it is not going to be thought-about as a legitimate PAN, the circulars famous.
Separate cell numbers and electronic mail addresses should be supplied for all Beneficial Owner (BO) account holders. However, after submitting a written declaration, BO can replace cell quantity and electronic mail handle of its members of the family. Family for this function has been outlined as self, partner, dependent dad and mom and dependent youngsters.
If similar cell quantity or electronic mail ID is captured in a couple of demat account and household flag can be not up to date, individuals shall be required to ship 15 days discover to such demat account holder for submitting cell quantity/electronic mail ID modification type or request letter for updating the identical or household flag declaration.
Failure to conform will end in classification of such accounts as non-compliant accounts.
Accountholders must inform the depositories about their revenue vary, with separate ranges being labeled for people and non-individuals.
For people, the revenue ranges are:
– Below ₹1 lakh
– ₹1 lakh to ₹5 lakh
– ₹5 lakh to ₹10 lakh
– ₹10 lakh to ₹25 lakh
– More than ₹25 lakh
For non-individuals, the revenue ranges are:
– Below ₹1 lakh
– ₹1 lakh to ₹5 lakh
– ₹5 lakh to ₹10 lakh
– ₹10 lakh to ₹25 lakh
– ₹25 lakh to ₹1 crore
– More than ₹1 crore
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