The Bombay Stock Exchange (BSE) on February 13, 2026, issued the notification regarding the Restriction on Trading for Clients with “On Hold” KYC Status and Compliance Requirements under SEBI KRA Regulations (Effective February 28, 2026)
The following has been stated namely: -
• KYC validation through KRAs has been streamlined. Additionally, KRAs share daily data regarding investor demise, and all SEBI-registered intermediaries must block debit transactions, suspend trading, and inactivate UCCs in such cases.
• Clients whose KYC status remains “On Hold” with KRAs (for both Aadhaar and Non-Aadhaar OVD cases) for KYCs uploaded between January 01, 2026 and January 31, 2026 will not be permitted to trade or square off open positions from February 28, 2026, until KYC validation is completed. Any open derivative positions will be allowed to expire naturally on contract expiry.
• The Exchange will mark such non-compliant PANs as “Not Permitted to Trade” effective February 28, 2026.
• Once KRA validation is completed, trading will be re-enabled on a T+1 basis, based on compliance confirmation received by the Exchange from the KRAs.
[Notification No. 20260213-9]
