The Central Depository Services (India) Limited (CDSL) on November 02, 2026, in reference to SEBI Circular No. SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 dated August 11, 2023, and its earlier Communique dated April 2, 2026, has notified that Demat accounts of Beneficial Owners (BOs) whose KYC attributes/details have not been verified by the KYC Registration Agencies (KRAs) shall not be permitted to undertake transactions until verification is completed.
CDSL has advised Depository Participants (DPs) that identified Demat accounts/BO IDs, including joint holders, whose KYC details remain unverified and which have not been frozen by the respective DPs, will be frozen for both debit and credit transactions on November 7, 2026, under freeze reason code “27 – Account Holder Related – KYC Non-Compliant.”
For unfreezing such accounts, DPs are required to follow the procedure prescribed under CDSL Communique No. CDSL/OPS/DP/SYSTM/2023/525 dated September 5, 2023. DPs must contact the respective KRAs for any queries or issues concerning clients' KRA status and ensure compliance.
[Notification No. CDSL/OPS/DP/POLCY/2026/770]
