The Bombay Stock Exchange (BSE), on May 12, 2026, issued guidelines pursuant to amendments to the SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011. The notice refers to SEBI circulars relating to simplification of the KYC process, rationalisation of the risk management framework at KRAs, and the centralized mechanism for reporting the demise of investors through KRAs.
BSE informed trading members that clients whose KYC records uploaded to KRAs between April 1, 2026 and April 30, 2026 remain “On Hold” for any reason, including Aadhaar and non-Aadhaar based Officially Valid Documents (OVD), shall not be permitted to trade on the Exchange with effect from May 23, 2026. Such clients will also not be allowed to square off their open positions until the KYC validation requirements are complied with, and existing positions will naturally expire on the respective contract expiry dates.
The Exchange further stated that non-compliant PANs received from KRAs will be flagged as “Not Permitted to Trade” from May 23, 2026. PANs becoming KRA compliant subsequently will be enabled for trading on a T+1 basis based on information received from KRAs. Members were also informed that the list of non-validated clients has been shared through the designated exchange file path for compliance and monitoring purposes.
[BSE Notice No. 20260512-16]
