On June 20, 2022, the Securities and Exchange Board of India has issued a circular requiring all stock brokers to name and tag demat accounts of clients by June 30, 2022.
- All demat accounts of stock brokers which are untagged need to be appropriately tagged by June 30, 2022.
- Credit of securities shall not be allowed in any demat account left untagged from July 01, 2022 onwards. Credits on account of corporate actions shall be permitted.
- Debit of securities shall also not be allowed in any demat account left untagged from August 01, 2022.
- Stock Broker shall obtain permission from Stock Exchanges to allow tagging of such demat accounts from August 01, 2022 onwards. Stock Exchange shall grant such approval within two working days after imposing penalty as per their internal policy.