Demat accounts: All demat accounts need to be tagged by the end of June

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Mumbai: Securities and Exchange Board of India(SEBI) has asked the stock brokers to name and tag the bank and Demat account To indicate the purpose of the customers for which they are being retained till 30th June.

Brokers will also have to report such accounts to stock exchanges and depositories.

At present, stockbrokers need to maintain demat Accounts under five categories including Proprietary Account, Pool Account, Client Unpaid Securities Account, Client Securities Margin Pledge Account and Client Securities Under Margin Fund Account.

“In consultation with the stock exchanges and depositories, it has been decided that all demat accounts of stock brokers should be properly tagged,” SEBI said in a circular on Monday.

The regulator said that with effect from July 1, 2022, credit of securities will not be allowed in any demat account without a tag. However, credit will be allowed on account of corporate actions.

SEBI also said that with effect from August 1, 2022, debit of securities will not be allowed in any demat account without a tag.

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