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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL - Non-Charging of Annual Maintenance Charges in Demat Accounts with Illiquid, Suspended, or Delisted Securities

30-Sep-2025 | CDSL/OPS/DP/POLCY/2025/661

CDSL has issued a communique on the Non-Charging of Annual Maintenance Charges in Demat Accounts with Illiquid, Suspended, or Delisted Securities.

By virtue of this circular, it has been specified that if the Beneficial Owner (BO) has made the closure request for the demat account having only securities balances that are illiquid, suspended for trading, or delisted, then such demat account shall be placed under the status "To be closed" and will be exempted from payment of Annual Maintenance Charges (AMC). Also, Depository Participants (DPs) are not required to send transactions or holding statements to the BOs for such accounts.

However, if, at a later stage, the securities in these accounts become liquid or are retained by BO, the BO/s may be advised to open a new demat account and transfer the securities from the "To be closed" account to the new demat account. The non-availability of such an option has also been specified.

So, DPs are required to carry out due verification of the status of securities before processing such closure requests from the list provided for such "To be closed" demat accounts having only illiquid, suspended, or delisted securities on a monthly basis.

Kindly refer to the attached document for more information.

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