The National Stock Exchange (NSE) on July 14, 2026, issued circular on Guidelines in pursuance of amendment to SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011.
The circular, issued in reference to SEBI guidelines and recent exchange communications, highlights updated compliance requirements related to the KYC (Know Your Client) validation process through KYC Registration Agencies (KRAs). It aligns with SEBI’s efforts to simplify KYC procedures and strengthen the risk management framework across intermediaries.
As per SEBI directions, a centralized mechanism for reporting the demise of investors has been implemented. In such cases, all regulated entities must immediately block debit transactions, suspend trading activity, and inactivate or close the client’s trading account (UCC). KRAs are sharing such data daily with exchanges and market participants for necessary action.
Further, clients whose KYC status is marked as “On Hold” by KRAs for the period June 1 to June 30, 2026, will face trading restrictions. From July 25, 2026, these clients will not be allowed to trade or even square off existing positions until their KYC is successfully validated. Any open positions will remain until contract expiry if not resolved.
The exchange will mark such non-compliant PANs as “Not Permitted to Trade”, and trading access will be restored only after compliance, typically on a T+1 basis upon validation confirmation from KRAs. Members can access the list of affected clients through the exchange portal to ensure timely compliance.
[Circular No: 31/2026]
