The Central Depository Services (India) Limited (CDSL) on May 27, 2026, issued the amendments to DP Operating Instructions Chapter 10 – Account Closure.
The following has been stated:
• The amendments introduce stricter timelines and enhanced safeguards for investors. Depository Participants (DPs) are now required to complete transfer-cum-closure requests within two working days of receiving a duly completed request, provided there are no outstanding dues. Where dues exist, DPs shall notify the Beneficial Owner (BO) within two working days, allow up to 30 calendar days for payment, and complete the closure within two working days after dues are cleared. If dues remain unpaid, the request shall be rejected, and the BO informed accordingly. DPs are also required to communicate account closure to the BO within two working days and maintain appropriate audit trails.
• The amendments further clarify the handling of frozen, pledged, lock-in, and inactive securities during account closure and shifting. Frozen or restricted securities may remain in accounts marked “To Be Closed” until the restrictions are lifted, while lock-in securities transferred across depositories will be processed through the Corporate Action mechanism. Enhanced system validations have been introduced to ensure that PAN details, account status, and the order of account holder names match between source and target accounts before transfers are processed.
• The revised instructions also provide detailed procedures for account transfers arising from marriage, divorce, or name changes through Gazette notification.
[Notification no. - CDSL/OPS/DP/POLCY/2026/354]
