Please check if your depository participant requires a re kyc
Your account may have become dormant
It cannot just be suspended like this
Demat account suspended by SEBI
We used to trade in share market about 5 years ago but due to losses we stopped trading. Now we wish to restart trading, also have holdings in the demat. But My partnership firm's Demat A/c has been suspended by SEBI. I have not received any notice or any intimation about the same, only my Broker told me about suspension. What can i Do?
Asked 2 years ago in Business Law
9 Answers
You can file application for revocation of suspension. Need to find out the reason for the same first
You first of all confirm the suspension through SEBI and the reasons for the same.
The broker may be providing you the facts or incorrect information, therefore you ascertain the reasons for suspension and take necessary actions to revoke the same and make it active if there are some requirements to be complied therein
You may peruse the circular of SEBI in this regard
SEBI/HO/CFD/CMD/CIR/P/2020/12 January 22 , 2020
Henceforth, the stock exchanges shall, having regard to the interests of investors and the securities market:
a) Take action in case of non - compliances with the Listing Regulations as specified in Annexure I of this Circular, and.
b) Follow the Standard Operating Procedure (“SOP”) for suspension and revocation of suspension of trading of specified securities as specified in Annexure II of this Circular.
Stock Exchanges may deviate from the above, if found necessary, only after recording reasons in writing.
It is not even certain that you account is suspended, only your broker states so. Ascertain whether your account is really suspended by login to CDSL website. There are multiple reasons for suspension of account but not trading for long period is not one of them. Account will not be suspended without notice to you and hearing you.
Write to SEBI as to why your account has s been suspended
we cannot advice you unless we know reasons for suspension of account
- The Demat account can be suspended , If any one or more of KYC attributes is not updated i.e. Mobile No., Email ID and Income Range .
- Hence, you check the reasons for the said suspension of the account from the office of the SEBI by online mode , and further can provide the KYC details for getting ready the account as well.
Dear Client,
Depositories have asked Demat and trading account holders to complete their know-your-customer (KYC) details by Saturday, July 31, 2021. Central Depository Services Ltd (CDSL) and National Securities Depository Ltd (NSDL) have warned that failing to do so will result in their accounts being deactivated.To avoid deactivation of their Demat or trading accounts, stock brokerage firms and depository participants have started sending emails and letters to their clients, including Demat and trading account holders, urging them to complete or modify their KYC details before the deadline expires.Certain KYC attributes must be changed mandatorily before July 31, 2021, according to circulars issued by both CDSL and NDSL in April 2021.Name, address, PAN, valid mobile number, valid email address, and income range are among them. From June 1, 2021, all of these six fields will be required for new accounts.To reactivate your demat account, you will have to fill a reactivation form and submit KYC details such as address proof and identity proof. Your DP will also verify if your signatures match the original records.Your Depository Participant (DP) might charge a fee to reactivate it. This varies from DP to DP.Once the depository marks your demat account dormant, you cannot make any debit or credit transactions whatsoever without reactivating the account first. And to do so, you would first need to go through the entire KYC process once again.Customers need to visit the branch of the bank and make an application to activate the dormant account. A bank can activate a dormant account the next business day or can take more time depending on internal processes and risk category of the depositor.
Thanks & Regards
Dear Sir/Ma'am,
According to SEBI regulations, 2008 since your account has been suspended because of the inactivity of your account or non-compliance of the SEBI regulations. Therefore, we need to ascertain at first instance on what grounds your account has been suspended.
Once ascertained, we can further write a request to the SEBI for the re- activation of your demat account. In case, if we discover the account has been suspended prima-faciely because of the blatant violation of SEBI regulations then, we have to either approach the tribunal or in alternative, court.
To answer your query , even the non-trading shares are also transferable.So, you can transfer them .
In case you require my assistance in the matter, i can be contacted through my google profile.
Link for the same is attached for your reference as: https://g.co/kgs/ZMWUyY
Your kind review will be appreciated.
Please write to SEBI asking them why your partnership's demat account was suspended and how it can be restored now. After their reply, you may plan further action.
