Demat accounts with KYC not validated by KRAs will be frozen on 7 November 2026
TaxByKK · Compliance News · taxbykk.com19 Oct 2026
In short
CDSL has told its Depository Participants that demat accounts linked to PANs whose KYC records were not validated by the KYC Registration Agencies (KRAs) will be frozen for both debit and credit on Saturday, 7 November 2026. The list is based on KRA data as on 5 November 2026, so investors who fix their KYC before then can avoid the freeze.
- Authority
- Central Depository Services (India) Ltd (CDSL)
- Communiqué
- CDSL/OPS/DP/POLCY/2026/734 dated 19 October 2026
- Type
- Circular
- Due date
- Fix KYC before 5 November 2026; freeze on 7 November 2026
- Freeze reason
- Code 27: Account holder related, KYC non-compliant
- Follows
- Communiqué CDSL/OPS/DP/POLCY/2026/650 dated 18 September 2026
Due date: Fix KYC before 5 November 2026; freeze on 7 November 2026
What changed
| Item | Before | Now |
|---|---|---|
| Demat accounts linked to non-validated PANs (KYC updated 1–30 September 2026) | Operating normally | Frozen for debit and credit from 7 November 2026 |
KRAs gave CDSL the list of PANs whose KYC could not be validated (including invalid PANs) and PANs updated during September 2026. CDSL has placed a DP-wise list in each DP's billing folder (BLNG<DP ID>_KRA_DEFICIENT_BO_08102026.tar) so DPs can follow up with the account holders.
Who it applies to
- Investors whose KYC record with the KRA is not validated
- Depository Participants (DPs) of CDSL
- Stock brokers and wealth managers with client demat accounts
- CAs and advisers handling clients' investments
What to do
- Ask your DP or broker whether your demat account is on the deficient list.
- Complete or correct the KYC with the KRA (PAN, Aadhaar link, address, mobile and email) before 5 November 2026.
- DPs: download the list from the billing folder and contact each listed account holder.
- If an account is frozen, follow CDSL's unfreezing process (communiqué CDSL/OPS/DP/SYSTM/2023/525 of 5 September 2023) once the KYC is validated.
Reference
CDSL communiqué CDSL/OPS/DP/POLCY/2026/734, 19 October 2026, Validation of KYC records with KRA; read with CDSL/OPS/DP/POLCY/2026/650 (18 September 2026) and CDSL/OPS/DP/SYSTM/2023/525 (5 September 2023).
Read the official PDF: CDSL communiquéWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
When will demat accounts with non-validated KYC be frozen?
On Saturday, 7 November 2026, based on KRA data as on 5 November 2026.
Is the freeze only for selling?
No. The accounts will be frozen for both debit and credit.
How can I avoid the freeze?
Get your KYC validated by the KRA before 5 November 2026; your DP or broker can tell you what is missing.
How do I unfreeze a frozen demat account?
After the KYC is validated, the DP follows CDSL's unfreezing process under communiqué CDSL/OPS/DP/SYSTM/2023/525.