Automated account deactivation for inadequate KYC triggers freeze on trading and demat accounts until KYC and acknowledgement are furnished. Where all designated MIIs fail to effect physical delivery of a SEBI SCN/order and obtain a signed acknowledgement at KYC-linked addresses, MIIs shall, after prior email/SMS notice and within a specified operational window from the last unsuccessful delivery report, freeze debit and credit of all trading and demat accounts of the entity identified by PAN. Pending pay-in/pay-out and open positions may be settled. If any MII effects service and obtains acknowledgement, accounts remain active but KYC records across accounts must be updated and confirmed to the KRA. Reactivation requires proof of address, the signed acknowledgement, KYC update by the registered intermediary, and MII confirmation, with mandated short timelines for inter-party communication.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Automated account deactivation for inadequate KYC triggers freeze on trading and demat accounts until KYC and acknowledgement are furnished.
Where all designated MIIs fail to effect physical delivery of a SEBI SCN/order and obtain a signed acknowledgement at KYC-linked addresses, MIIs shall, after prior email/SMS notice and within a specified operational window from the last unsuccessful delivery report, freeze debit and credit of all trading and demat accounts of the entity identified by PAN. Pending pay-in/pay-out and open positions may be settled. If any MII effects service and obtains acknowledgement, accounts remain active but KYC records across accounts must be updated and confirmed to the KRA. Reactivation requires proof of address, the signed acknowledgement, KYC update by the registered intermediary, and MII confirmation, with mandated short timelines for inter-party communication.
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