KYC Deadline for Demat Accounts Extended

The Securities and Exchange Board of India (SEBI) has extended the deadline for establishing existing demat and trading accounts KYC-compliant to 30 June 2022. The deadline for completing knowyour-customer (KYC) compliance for demat and trading accounts has been extended by almost three months. 
As per the NSDL circular, “NSDL vide its Circular No. NSDL/POLICY/2022/041 dated 25 March 2022 informed about the procedure for suspension of demat accounts in case of non-compliance with 6 KYC attributes. Based on the discussion held with other MIIs and SEBI, it is decided to give a one-time extension for existing demat accounts till June 30, 2022." 
To prevent having their accounts deactivated, many stockbrokers have begun sending communications to their clients asking them to update the required KYC qualities. Account holders who have not updated their KYC details yet have an additional three months to avoid having their demat and trading accounts deleted, according to the new extended timetable.
The account would have been deactivated if the deadline had not been extended and the KYC attributes had not been completed. Furthermore, a person would be unable to trade on the stock market. 
Even if a person purchases stock in a corporation, the stock cannot be transferred to his or her account until the KYC attributes have been updated and verified. Participants are notified that a significant amount of time has passed since they were encouraged to gather the six KYC qualities proactively. All demat accounts, however, have not yet been updated with the six KYC criteria. 
A demat, trading account holder is required to update the following KYC attributes: 
a) Name 
b) Address 
c) PAN 
d) Valid mobile number 
e) Valid email ID 
f) Income range
All 6-KYC attributes are made mandatory for new accounts opened from June 1, 2021.



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Changes in Our Business Model
25th Sept 2020
Greetings from Moneylife Advisory Services
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
Debashis Basu