The National Securities Depository Limited (NSDL) on May 22, 2026, issued circular on suspension of Demat accounts of existing clients whose KYC records are not found to be valid by KRAs after the validation process.
NSDL has informed participants that, in line with its April 28, 2026 circular, demat accounts of clients whose KYC records were found invalid by KRAs (including cases of invalid PAN) were already suspended on May 02, 2026 for records updated in March 2026.
Further, KRAs have shared additional data for non-compliant KYC records (including invalid PANs) updated between April 01 and April 30, 2026. Based on this data (as of May 04, 2026), NSDL has identified the affected demat accounts and made the DP-wise list available on the E-pass portal under “Non-Complied KYC KRA Accounts” for participants to review and take action with their clients.
These identified accounts will be frozen for both debit and credit transactions on May 30, 2026, based on updated KRA data to be received on May 29, 2026. Participants are required to notify affected clients through appropriate communication channels (email, SMS, letter, etc.).
For reactivation (removal of suspension), participants must follow the procedures outlined in NSDL Circular dated August 18, 2023.
[Circular No.: NSDL/POLICY/2026/0082]
