Brokers will also have to report such accounts to stock exchanges and depositories.
At present, stock brokers are required 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 funding account.
“In consultation with stock exchanges and depositories, it has been decided that all demat accounts maintained by stock brokers should be appropriately tagged,” Sebi said in a circular on Monday.
The regulator said credit of securities will not be allowed in any demat account left untagged from July 1, 2022 onwards. However, credits on account of corporate actions will be permitted.
Sebi also said debit of securities would not be allowed in any demat account left untagged from August 1, 2022.
