The Central Depository Services (India) Limited (CDSL) on April 16, 2026, issued a notification regarding the validation of KYC Records with KRA.
The following has been stated: -
•CDSL has instructed DPs to act on KRA data identifying demat accounts linked to invalid or non-validated PANs, including updates from March 2026.
•A DP-wise list of such deficient accounts has been shared for necessary follow-up. These demat accounts will be frozen for both debit and credit transactions effective May 02, 2026, under reason code 27 (KYC non-compliant).
•The freeze is based on updated KRA data as of April 29, 2026. For unfreezing, DPs must follow the prescribed process outlined in the earlier September 05, 2023, communique and ensure full compliance.
The detailed notification is given in the document below.
[Notification No.: CDSL/OPS/DP/POLCY/2026/264]
