The National Stock Exchange of India Limited (NSE), on November 11, 2025, through its Investor Services Cell (ISC), in continuation of SEBI Circular No. SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 dated August 11, 2023, and Exchange Circular NSE/ISC/70772 dated October 13, 2025, concerning the simplification of KYC processes and rationalisation of risk management framework at KRAs (KYC Registration Agencies). The circular reiterates compliance obligations for intermediaries under the SEBI KYC Registration Agency (KRA) Regulations, 2011.
The Exchange has informed trading members that clients whose KYC records remain unvalidated or are marked “On Hold” by KRAs—whether Aadhaar-based or other OVD-based—between October 1, 2025, and October 31, 2025, will face trading restrictions effective November 22, 2025. Such clients will not be permitted to trade or square off open positions until their KYC validation is completed. Any existing open positions will lapse naturally upon contract expiry. Additionally, in line with SEBI Circular SEBI/HO/OIAE/OIAE_IAD1/P/CIR/2023/0000000163 dated October 3, 2023, all SEBI-registered entities must block debit transactions and suspend trading accounts in case of investor demise, based on daily data shared by KRAs.
The Exchange will flag all non-compliant PANs as “Not Permitted to Trade” starting November 22, 2025. Once a client’s KYC becomes compliant, trading permissions will be restored on a T+1 basis, based on validation updates received from KRAs. The Exchange has advised all members to ensure strict compliance with these requirements to avoid disruption of investor transactions.
[Notification No. NSE/ISC/71227]
