Description

NSE introduces new client categories to differentiate between NRE and NRO account holders in the UCC database, effective November 22, 2025.

Summary

NSE is revising the client category structure in the Unique Client Code (UCC) database to facilitate better identification of Non-Resident External (NRE) and Non-Resident Ordinary (NRO) clients. The existing NRI category (code 11) will be reclassified as NRE, and a new category code 37 will be introduced for NRO clients. Trading members must update their client records accordingly by the effective date.

Key Points

  • Current NRI client category (code 11) will be treated as NRE effective November 22, 2025
  • New investor category code 37 created for NRO account holders
  • Trading members must update all client records in the UCC database
  • No changes required for existing UCCs created for NRE accounts
  • Changes will be available on UCI Online from November 22, 2025

Regulatory Changes

Client Category Structure:

Client CategoryCategory CodeRemarks
NRE11Existing NRI clients shall be treated as NRE
NRO37Client category for NRO account holders

The exchange is creating these new investor categories to enable easier identification and classification of non-resident clients based on their account types.

Compliance Requirements

Trading Members must:

  1. Review all existing client records in the UCC database
  2. Update client classifications as needed:
    • Clients with NRE accounts: No change required if already under category 11
    • Clients with NRO accounts: Update to new category code 37
  3. Complete all necessary updates before the effective date
  4. Ensure accurate classification going forward
  5. Contact uci@nse.co.in for any queries

Contact Information:

Important Dates

  • Circular Date: October 30, 2025
  • Effective Date: November 22, 2025
  • UCI Online Availability: November 22, 2025

Impact Assessment

Operational Impact:

  • Trading members need to review and update client records in their UCC database
  • System changes required to accommodate the new NRO category code 37
  • Enhanced clarity in client categorization for regulatory and operational purposes

Market Impact:

  • Limited direct market impact
  • Improves data accuracy and regulatory compliance for non-resident investor classification
  • Facilitates better monitoring and reporting of NRE vs NRO client activities

Administrative Burden:

  • One-time exercise to reclassify existing clients
  • Trading members have approximately 3 weeks to complete the updates
  • Process streamlined through UCI Online platform

Impact Justification

Administrative change affecting NRI client classification in UCC database. Trading members must update records by November 22, 2025 to ensure proper categorization of NRE vs NRO clients.