Description

BSE notifies members that the requirement for reporting demat accounts to stock exchanges has been discontinued effective April 17, 2026, pursuant to SEBI circular dated March 23, 2026. Exchanges will now obtain demat account data directly from depositories.

Summary

BSE has informed its members that the requirement to report demat accounts to stock exchanges has been discontinued with effect from April 17, 2026. This change follows SEBI circular Ref No. HO/38/11/(1)2026-MIRSD-POD/I/7656/2026 dated March 23, 2026. Going forward, BSE will obtain data on all demat accounts opened or closed by stockbrokers directly from the depositories, removing the obligation from members.

Key Points

  • Demat account reporting by members to stock exchanges is discontinued w.e.f. April 17, 2026
  • Change is mandated by SEBI circular dated March 23, 2026
  • BSE will now source demat account data (opened/closed) directly from depositories
  • No further action is required from members regarding this reporting obligation

Regulatory Changes

Pursuant to SEBI circular Ref No. HO/38/11/(1)2026-MIRSD-POD/I/7656/2026 dated March 23, 2026, the regulatory framework for demat account reporting has been revised. The responsibility for data collection shifts from member self-reporting to direct depository-to-exchange data sharing.

Compliance Requirements

  • Members are no longer required to report demat account data to BSE
  • No affirmative action is needed; the obligation is simply removed
  • Members may contact BSE at 022-69158540, 022-45720640, or 022-45720440, or email Bse.inspection@bseindia.com for any queries

Important Dates

  • March 23, 2026: SEBI circular issued discontinuing the reporting requirement
  • April 17, 2026: Effective date of discontinuation of demat account reporting

Impact Assessment

This change reduces the compliance burden on stockbrokers, who no longer need to maintain and submit demat account reports to BSE. The operational impact is minimal and positive — it streamlines data flow by having exchanges obtain information directly from depositories, improving data accuracy and reducing duplication. There is no adverse impact on trading, market operations, or investor interests.

Impact Justification

This circular reduces a compliance burden on stockbrokers by eliminating the demat account reporting requirement to exchanges. It is an administrative simplification with no direct market or trading impact.