Your demat account can be frozen by three entities: you (the account holder), Zerodha (your depository participant), or CDSL (the depository). Understanding who froze your account helps determine the unfreezing process.
Account holder freeze (BO freeze)
When you request to freeze your account: You can freeze your own account through CDSL easi or by requesting Zerodha. You can unfreeze or freeze the stocks in your Zerodha account by submitting the freeze/unfreeze request form.
Freezes initiated by Zerodha (DP freeze)
Zerodha freezes accounts for compliance and regulatory reasons. The specific requirements to unfreeze your account depend on the reason for freezing:
Account holder status changes
When an account holder passes away: Your account gets frozen when Zerodha receives information about a deceased account holder.
This applies when:
- The sole/first holder is deceased
- The second holder is deceased
- The third holder is deceased
To unfreeze the account and transfer securities to the claimant, follow the transmission process outlined for deceased account holders.
When you turn 18 (minor account conversion): Your account freezes automatically when you turn from minor to major. To unfreeze your account, you need to submit the required documents for the minor to major conversion.
KYC and compliance issues
- When you have incomplete KYC (mandatory 6 KYC attributes missing): Your account gets frozen when you lack complete name, PAN, valid mobile number and email ID, complete address, or income details. Complete the Re-KYC process to activate your account.
- When your KYC verification is non-compliant: Multiple KYC-related problems can freeze your account. Zerodha sends an email explaining the problem and specifying the required documents to resolve it.
- When CDSL reports KYC deficiency: CDSL freezes your account when you hold multiple demat accounts across different depository participants using the same PAN/mobile/email/bank details. Respond to the clarification email sent to you or create a ticket with the required information.
- When your KYC and PAN are invalid or non-compliant: Your account gets frozen due to KYC and PAN-related compliance issues that require resolution through proper documentation.
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When your PAN becomes inoperative:
Your account freezes when your PAN becomes inactive or non-functional.
- When you are a designated person: Your account freezes if you are identified as a designated person of a company.
Freezes initiated by CDSL
CDSL freezes accounts for regulatory and legal reasons. Zerodha cannot unfreeze these accounts - you must contact CDSL directly at [email protected].
Legal and regulatory orders
When statutory authorities request freezing:
- SEBI directive or order
- Court orders from judicial authorities
- ITO attachment
- Special Recovery Officer orders
When law enforcement agencies request freezing:
- CBI/Police orders
- Criminal Investigation Department (CID)
- Serious Fraud Investigation Office (SFIO)
- Directorate of Enforcement (ED)
- Anti-Corruption Bureau (ACB)
When tax authorities request freezing:
- Income Tax Department (ITD)
- Service tax authorities
- Sales tax departments
- Customs authorities
- Central excise departments
When tribunals order freezing:
- Debt Recovery Tribunal (DRT) orders
When your PAN is restricted:
- Restrained or restricted PAN
Trading restrictions
When you're in a no-trading window period: CDSL freezes specific securities during no-trading window periods for designated persons. If you are a designated person, submit a declaration to [email protected] for exemption using the form in the CDSL circular (PDF).
Other reasons for account freezing
Your demat account may be frozen for other unspecified reasons not covered in the above categories.
What you can do to unfreeze your account
- For account holder or Zerodha-initiated freezes: Create a support ticket for assistance with the unfreezing process.
- For CDSL-initiated freezes: Contact CDSL directly at [email protected] using their official contact details, as Zerodha cannot intervene in these cases.
For any other reason: If your demat account is frozen for any reason not listed above, create a ticket.