On Feb. 7, IND BSE, IND NSE issued notice re permission to trade.
IND BSE, IND NSE issued a compliance notice with respect to guidelines pursuant to changes to SEBI KYC (know your client) registration agency (KRA) regulations 2011.
Notice is re clients whose know your customer (KYC) are not found to be validated by KYC registration agencies (KRAs) for KYCs which are on hold for any reasons (both Aadhaar and non-Aadhaar based) uploaded from Sep. 1, 2023 to Jan. 31, 2024.
Such unique client codes (UCCs) shall neither be permitted to trade nor square up open positions from Feb. 17, 2024, until they comply with the prescribed requirement.
Such open positions will naturally expire on the expiry date of the respective contract.
IND BSE and IND NSE shall flag the non-compliant permanent account numbers (PANs) provided by the KRAs, as not permitted to trade starting from Feb. 17, 2024.
All PANs that become KRA compliant subsequently will be permitted to trade on T+1, based on the information received on T Day; list of non-validated clients provided.
Effectiveness
IND BSE and IND NSE shall flag non-compliant PANs starting from Feb. 17, 2024.
Mar. 13, 2024 KYC Status Guidance
On Mar. 13, 2024, IND BSE issued notice specifically addressing clients whose KYC status is on hold for any reasons, uploaded to the KRA from Feb. 1 to Feb. 29, 2024.
Such clients will neither be permitted to trade nor able to square up open positions starting from Mar. 23, 2024, until they comply with KYC validation requirements.
Any open positions held by non-compliant clients will expire naturally on expiry date.
IND BSE will flag non-compliant PANs as not permitted to trade starting from Mar. 23.
PANs becoming KRA-compliant subsequently will be permitted to trade on next trading day (T+1), based on information received from KRA on current trading day (T day).
Mar. 13, 2024 IND NSE Guidance
On Mar. 13, 2024, IND NSE issued circular addressing clients whose KYC status is on hold for any reasons, uploaded to the KRA from Feb. 1 to Feb. 29, 2024.
Reiterates the instructions set out by IND BSE on the same day, as detailed above.
IND NSE will flag non-compliant PANs as not permitted to trade starting from Mar. 23.
A list of non-validated clients is provided on the member portal for reference.
Document dated Mar. 13, 2024, received from IND NSE Mar. 17, summarized Mar. 20.
Apr. 2024 IND NSE and IND BSE Guidelines
On Apr. 10, 2024, IND NSE issued a circular addressing clients whose KYC status is on hold for any reasons, uploaded to the KRA from Mar. 1, 2024 to Mar. 31, 2024.
Such clients will not be permitted to trade on the exchange nor be allowed to square up their positions from Apr. 27, 2024, until they comply with validation requirements.
IND NSE will flag non-compliant PANs as not permitted to trade starting from Apr. 27.
A list of non-validated clients is provided on the member portal for reference.
On the same day, IND BSE issued a compliance notice, much to the same effect.
Jun. 14, 2024 Non-Compliance
On Jun. 14, 2024, IND BSE said that the clients whose KYC details are not found to be validated by KRAs uploaded from Apr. 01, 2024 to May 31, 2024 shall neither be permitted to trade on exchange, nor will they be allowed to square off open positions.
Effective from week of Jun. 29, 2024 until they comply with validation requirements.
Such open positions will naturally expire on the expiry date of the respective contract.
BSE shall flag non-compliant PANs, as provided by KRAs, as not permitted to trade.
All PANs that become KRA compliant subsequently, will be permitted to trade on T+1, based on the information received from KRA by the exchange on T day.
Jun. 14, 2024 IND NSE Circular
On Jun. 14, 2024, IND NSE said that the clients whose KYC details are not found to be validated by KRAs uploaded from Apr. 1, 2024 to May 31, 2024 shall neither be permitted to trade on exchange, nor will they be allowed to square off open positions.
Effective from week of Jun. 29, 2024 until they comply with validation requirements.
Document dated Jun. 14, 2024, received from IND NSE Jun. 18, summarized Jun. 21.
Jul. 4, 2024 Non-Compliance Action
On Jul. 4, 2024, IND BSE said clients whose KYC details are not found to be validated by KRAs uploaded until Aug. 31, 2023 shall neither be permitted to trade on exchange, nor be allowed to square off open positions, from Aug. 3, 2024 until compliant.
IND BSE will flag non-compliant PANs provided by KRAs as not permitted to trade from Aug. 3, 2024; PANs that subsequently become KRA-compliant will be allowed to trade from the next trading day (T+1), based on data received on the trading day (T day).
Jul. 4 2024 IND NSE Circular
On Jul. 4, 2024, IND NSE said clients whose KYC details are not found to be validated by KRAs uploaded until Aug. 31, 2023 shall neither be permitted to trade on exchange, nor be allowed to square off open positions, from Aug. 3, 2024 until compliant.
IND NSE will flag non-compliant PANs provided by KRAs as not permitted to trade from Aug. 3, 2024; PANs that subsequently become KRA-compliant will be allowed to trade from the next trading day (T+1), based on data received on the trading day (T day).
Document dated Jul. 4, 2024, received from IND NSE Jul. 7, summarized on Jul. 10.
Jul. 12, 2024 Non-Validated Clients
On Jul. 12, 2024, IND BSE, IND NSE informed that clients whose KYC has not been validated by KRAs i.e. the KYCs are on hold for any reasons, shall neither be permitted to trade on the exchange, nor will be allowed to square up open positions.
Includes AADHAAR and non-AADHAAR based OVD uploaded from Jun. 1 to Jun. 30.
Arrangement will be effective from Jul. 27, 2024 until compliance with requirements.
Eventually, such open positions will expire on the expiry date of respective contract.
All PANs that become KRA compliant subsequently, will be permitted to trade on T+1.
Aug. 4, 2024 IND BSE Timeline Extension
On Aug. 4, 2024, IND BSE notified members of an exception to its Jul. 4 notice which stated BSE will flag non-compliant PANs as not permitted to trade from Aug. 3, 2024.
Based on representations received from trading members, BSE has decided to provide a 3-day extension operating from Aug. 5 to 7, 2024, subject to specified conditions.
These include implementation of risk reduction mode and daily reporting requirements.
BSE said no further extension will be granted and it will take disciplinary action for non-compliance by trading members for failure to adhere to the Jul. 4 guidance.
Aug. 5, 2024 IND BSE Clarification
On Aug. 5, 2024, IND BSE issued notice clarifying reporting details in its Aug. 4 notice.
Where TMs are required to report certain matters on a daily basis, they must do so via email in prescribed format, with the subject title status of reduction in open positions.
Aug. 14, 2024 Additional IND BSE Compliance Notice
On Aug. 14, 2024, IND BSE issued a notice with respect to guidelines made in pursuance of amendments that were made to the Securities and Exchange Board of India KYC (know your client) registration agency (KRA) regulations, 2011 above.
It said clients with KYC statuses marked as on hold (including both Aadhaar and non-Aadhaar based OVD) from Jul. 1, 2024, to Jul. 31, 2024, are not permitted to trade.
Nor will they be allowed to square off their open positions, if any, with effect from Aug. 31, 2024 until they comply with the validation requirements; IND BSE explained that non-compliant positions will expire on the contract's expiry date if not validated.
Once PANs are compliant, flagged as per KRA validation, trading will be allowed from day following compliance update (T+1), based on data provided by IND BSE on T Day.
Sep. 2024 Trade Restriction
On Sep. 9, 2024, IND BSE reminded clients marked as on hold will not be permitted to trade on the Exchange from Sep. 21, 2024, until they comply with KYC validation.
IND BSE will flag non-compliant PANs as not permitted to trade effective from Sep. 21.
PANs that later become KRA-compliant will be allowed to trade on a T+1 basis, depending on when the Exchange receives updated KYC information from KRAs.
Oct. 2024 Non-Validated Clients
On Oct. 10, 2024, IND BSE and IND NSE announced clients whose KYC are not found to be validated by KRAs shall not be permitted to trade on the exchange or square off their open positions, effective from Oct. 26, 2024 until compliance with requirements.
Applies to AADHAAR and non-AADHAAR based OVD uploaded from Sep. 1 to Sep. 30.
Non-compliant PANs will be flagged as not permitted to trade w.e.f. Oct. 26, 2024.
All PANs that become KRA compliant subsequently, will be permitted to trade on T+1, based on the information received from KRA by the exchange on T Day.
Regulators
IND BSE; IND NSE
Entity Types
B/D; Exch
Reference
Cir 53/2024, NSE/ISC/64477, Nt 20241010-15, 10/10/2024; Nt 20240909-27, 9/9/2024; Nt 20240814-45, 8/14/2024; Nt 20240805-15, 8/5/2024; Nt 20240804-1, 8/4/2024; Cir NSE/ISC/62916, 26/2024, Nt 20240712-15, 7/12/2024; Cir NSE/ISC/62767, 33/2024, Nt 20240704-41, 7/4/2024; Cir 31/2024, NSE/ISC/62456, 6/14/2024; Nt 20240614-52, 6/14/2024; Nt 20240410-50, Cir NSE/ISC/61553, 19/2024, 4/10/2024; Cir NSE/ISC/61100, 12/2024, 3/13/2024; Nt 20240313-29, 3/13/2024; Cir NSE/ISC/60600, 06/2024, Nt 20240207-44, 2/7/2024
