Description

BSE mandates trading members to upload and validate all active client KYC records with KRAs by September 26, 2025, with trading restricted to clients having 'KYC Registered' or 'KYC Validated' status.

Summary

BSE has issued a compliance notice requiring all trading members to upload and validate client KYC records with KYC Registration Agencies (KRAs) by September 26, 2025. This follows SEBI regulations requiring KYC information upload within 3 working days of completion and BSE’s observation of non-compliance during sample verification.

Key Points

  • Trading members must ensure all active client KYCs are uploaded to KRAs
  • Only clients with ‘KYC Registered’ or ‘KYC Validated’ status should be permitted to trade
  • Sample comparison revealed trading members have not adhered to SEBI circular requirements
  • Non-upload of KYCs is considered non-compliance with regulatory requirements
  • Trading members must prioritize uploading all pending KYC records without delay

Regulatory Changes

  • SEBI modified timeline from 10 working days to 3 working days for KYC document submission (October 12, 2023 circular)
  • Clients can open accounts and transact as soon as KYC process is completed
  • Clients whose record attributes cannot be verified by KRAs cannot transact until verification is complete

Compliance Requirements

  • Upload KYC information of all active clients to KRA systems
  • Submit KYC documents (application form and supporting documents) to KRAs
  • Maintain proof of dispatch for all submissions
  • Ensure only clients with proper KRA status are allowed to trade
  • Monitor open positions of non-compliant clients and take appropriate measures
  • Contact respective KRAs for queries regarding client status

Important Dates

  • September 26, 2025: Final deadline for all active client KYC records to be uploaded and validated/registered by KRAs
  • September 3, 2025: Notice date

Impact Assessment

This compliance requirement has significant operational impact on trading members who must review their entire client base, identify non-compliant KYC records, and complete uploads within the specified timeframe. Trading restrictions for non-compliant clients may affect trading volumes and client relationships. The mandate ensures seamless interoperability across market participants and protects investor interests while maintaining regulatory compliance.

Impact Justification

Mandatory compliance requirement affecting all trading members and their clients, with specific deadline and trading restrictions