Guidelines in pursuance of amendment to SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011

National Stock Exchange of India Limited, vide Circular No. NSE/ISC/75191 dated July 14, 2026, has announced an important update regarding Guidelines in pursuance of amendment to SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011.

Key Details of the Update –
• The circular is issued pursuant to SEBI Circular No. SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 dated August 11, 2023 and the latest NSE circular NSE/ISC/74672 dated June 12, 2026 relating to simplification of the KYC process and rationalisation of the Risk Management Framework at KRAs.

• Members are reminded of SEBI Circular No. SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/0000000163 dated October 03, 2023 on the centralized mechanism for reporting the demise of an investor through KRAs. Regulated Entities are required to block debit transactions, suspend trading transactions, and inactivate/close the UCC based on demise information shared daily by KRAs.

• Applicability: Clients whose KYC records are not validated by KRAs ("On Hold") for any reason, whether based on Aadhaar or Non-Aadhaar Officially Valid Documents (OVD), and uploaded to the KRA during the period June 01, 2026 to June 30, 2026.

• Such clients shall not be permitted to trade on the Exchange and shall not be allowed to square off their existing open positions from July 25, 2026 until the KYC validation requirements are fulfilled. Existing open derivative positions will naturally expire on their respective contract expiry dates.

• The Exchange will mark the PANs received from KRAs as "Not Permitted to Trade" with effect from July 25, 2026. Once the PAN becomes KRA compliant, trading permission will be restored on T+1, based on KRA data received by the Exchange on the previous trading day.

• Effective Date: July 25, 2026 for restriction on trading of non-KRA validated clients.

• Key Changes: Non-KRA validated clients will no longer be permitted to trade or square off positions until KYC validation is completed, and the Exchange will automate trading permissions based on KRA validation status.

• Penalty/Consequence: Non-compliant PANs will be flagged as "Not Permitted to Trade" until KRA validation is completed.

Actions if Any –
• Trading Members should ensure monitoring of the daily KRA validation status shared by the Exchange.

• Members should identify affected clients through the file available on the Member Portal at ENIT > Log > Downloads under the file name <TM Code>_Non-Validated_Clients_by_KRA and ensure compliance before permitting trading.

Compliance Deadline –
• Clients whose KYC remained "On Hold" for records uploaded during June 01, 2026 to June 30, 2026 will be restricted from trading with effect from July 25, 2026, until KRA validation is completed.