Deadline For Default Demat Accounts Nears

With the October deadline for demat account holders to submit their PAN card details nearing, the National Securities Depository Ltd (NSDL) has already seen closure of over 25,000 accounts since mid-August.

Tightening its screws on the possible loopholes after the infamous demat account scam SEBI had made PAN details mandatory. Also for all demat accounts opened up to March 31, photocopies of Pan Cards need to be submitted before October 1st this year.

The Securities and Exchange Board of India (Sebi) had directed depository participants to freeze all demat accounts from October 1 if the account-holders failed to provide their PAN details.

While a PAN number is allotted within 10 ten days of application, getting the actual Pan card takes much longer. The government has said that efforts are on to reduce processing time.