The National Securities Depository Limited (NSDL) on December 04, 2025, issued a circular reminding Depository Participants (DPs) of their obligations under SEBI’s KYC framework. The circular draws reference to key SEBI instructions issued in 2011, 2023 (August), and 2023 (October), governing KYC registration, documentation, and verification timelines.
NSDL reiterates that, as per SEBI norms, intermediaries must upload client KYC information to KYC Registration Agencies (KRAs) within 3 working days from completion of the KYC process. It further emphasizes SEBI’s mandate that clients may transact immediately after KYC completion, while those whose KYC attributes cannot be verified must be restricted from further transactions until verification is completed.
A review by NSDL revealed non-compliance by several DPs in uploading PAN-linked KYC records to KRAs. DPs are therefore instructed to ensure that all non-closed client KYCs are uploaded and that only clients with “KYC Registered” or “KYC Validated” status are allowed to transact. All pending uploads must be completed by January 02, 2026, to maintain interoperability and prevent investor inconvenience.
[Notification No. NSDL/POLICY/2025/0157]
