Description
NSE mandates trading members to upload all active client KYCs to KRAs by September 26, 2025, with only KYC registered/validated clients permitted to trade.
Summary
NSE has issued a mandatory directive to all trading members regarding the upload of client KYC records to KYC Registration Agencies (KRAs) for validation. The circular addresses non-compliance with SEBI requirements and sets a strict deadline of September 26, 2025, for all active client KYCs to be uploaded and validated. Only clients with “KYC Registered” or “KYC Validated” status will be permitted to trade after this date.
Key Points
- Trading members must upload KYC information within 3 working days from completion of KYC process (reduced from 10 days)
- Sample comparison revealed trading members have not adhered to SEBI circular requirements
- Only clients with “KYC Registered” or “KYC Validated” status permitted to trade
- Non-compliance with KYC upload requirements violates SEBI regulations
- Trading members must monitor open positions of non-compliant clients
- Contact respective KRAs for queries regarding client status
Regulatory Changes
SEBI has modified the timeline for KYC document submission from 10 working days to 3 working days from the date of completion of the KYC process, as per circular SEBI/HO/MIRSD/SECFATF/P/CIR/2023/169 dated October 12, 2023.
Compliance Requirements
- Upload all active client KYCs to KRAs immediately
- Ensure all pending KYC records are uploaded without delay
- Verify client KRA status before allowing trading
- Monitor open positions of clients with pending KYC validation
- Take appropriate measures to ensure compliance
- Maintain proof of dispatch of KYC documents to KRAs
Important Dates
- September 26, 2025: Final deadline for all active client KYCs to be uploaded and validated/registered by KRAs
- 3 working days: Maximum time allowed from KYC completion to upload to KRA system
Impact Assessment
This circular has significant operational impact on trading members who must immediately audit their client KYC compliance status. Non-compliant clients will face trading restrictions, potentially affecting trading volumes and member relationships. The requirement ensures seamless interoperability across market participants and prevents investor inconvenience, but requires immediate action from trading members to avoid business disruption.
Impact Justification
Critical compliance requirement affecting all trading members with specific deadline and trading restrictions for non-compliant clients