IND BSE KYC Validation Compliance


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.
  • Follows IND SEBI Jan. 2021 issued consultation on infrastructure for AML, see #95503.
  • Compliance Notice Details
  • 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.

Regulators IND BSE; IND NSE
Entity Types B/D; Exch
Reference 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
Functions AML; Compliance; Legal; Operations; Risk; Trading
Countries India
Category
State
Products Corporate; Securities
Regions AP
Rule Type Final
Rule Date 2/7/2024
Effective Date 7/27/2024
Rule Id 200668
Linked to Rule :95503
Reg. Last Update 7/12/2024
Report Section AML & Enforcement

Last substantive update on 07/17/2024