According to a statement issued by the CSE, the initiative introduces a staggered suspension framework under which eligible dormant accounts will be classified as "Non-Operative Client Accounts." Transactions and other dealings in these accounts will be temporarily restricted until the account holder completes a simple reactivation process by updating the required Know Your Customer (KYC) information.
The CSE said the move, outlined in the latest CDS circular, has been introduced in accordance with CDS Rule 3.10 to strengthen investor protection and reduce the risk of fraudulent activity involving inactive accounts.
The exchange emphasized that the "Non-Operative Client Account" designation is not permanent and does not affect the ownership rights of account holders. Investors will continue to receive all corporate action benefits, including dividends and other distributions, while securities held in the accounts will not be transferred, forfeited, or cancelled.
Account holders can reactivate their accounts at any time by submitting updated KYC documentation, allowing normal account operations to resume.
