The Central Depository Services (India) Limited (CDSL) on May 14, 2026, issued a notification regarding the validation of KYC records with KYC Registration Agencies (KRAs) and the freezing of non-compliant demat accounts.
The following has been stated:
As a continuation of its earlier communiqué dated April 16, 2026, CDSL informed Depository Participants (DPs) that KRAs have shared a list of PANs whose KYC records were found invalid or deficient during the validation process for the period April 01, 2026, to April 30, 2026. Based on this data, CDSL has provided DP-wise lists of affected demat accounts in the billing folder under the file name format “BLNG<<DP ID>>_KRA_DEFICIENT_BO_0605026.tar” for necessary follow-up with the concerned account holders.
It has further stated that these identified demat accounts will be frozen for both debit and credit transactions on May 30, 2026, using freeze reason code “27 – Account holder related – KYC non-compliant,” based on updated KRA data available as of May 27, 2026.
For unfreezing such accounts, DPs are required to follow the process specified in the earlier notification. Depository Participants have been advised to ensure compliance with these instructions.
[CDSL/OPS/DP/POLCY/2026/325]
