Description

NSE extends the deadline for Trading Members to upload client KYC records to KRAs to January 30, 2026, following requests for compliance extension.

Summary

NSE has extended the deadline for Trading Members to upload client KYC records to KRA (KYC Registration Agencies) to January 30, 2026. This extension follows multiple requests from Trading Members seeking more time to comply with the revised 3-day timeline mandated by SEBI for KYC uploads. Non-compliant clients will not be permitted to trade or square up open positions after the deadline.

Key Points

  • Original SEBI mandate required KYC upload within 10 working days, later revised to 3 working days (SEBI Circular dated October 12, 2023)
  • Sample comparison revealed several Trading Members have not complied with the revised 3-day timeline
  • Only clients with KRA status “KYC Registered” or “KYC Validated” are permitted to trade
  • PANs not validated by KRAs will be blocked from trading and squaring up open positions
  • Extension deadline: January 30, 2026
  • Members must closely monitor open positions of affected clients

Regulatory Changes

This circular extends the compliance timeline previously communicated in NSE/ISC/70450 dated September 26, 2025. The regulatory framework is based on:

  • SEBI Circular MIRSD/Cir-26/2011 (December 23, 2011) - Original 10-day mandate
  • SEBI Circular SEBI/HO/MIRSD/SECFATF/P/CIR/2023/169 (October 12, 2023) - Revised to 3 working days
  • SEBI Circular SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 (August 11, 2023) - KYC simplification and verification requirements

Compliance Requirements

For Trading Members:

  • Upload all client KYC records to KRAs within 3 working days of KYC completion
  • Ensure KRA status verification shows “KYC Registered” or “KYC Validated” for all trading clients
  • Complete pending uploads by January 30, 2026
  • Monitor open positions of clients with unvalidated KRA status
  • Take appropriate measures to ensure compliance
  • Contact respective KRAs directly for queries related to client KRA status

For Clients:

  • May begin transacting upon completion of KYC process
  • Must have KRA-verified status to continue trading
  • Clients whose KYC attributes cannot be verified will be blocked from further transactions until verification is completed

Important Dates

  • January 30, 2026: Final deadline for Trading Members to upload pending client KYC records to KRAs
  • Post January 30, 2026: PANs not validated by KRAs will be blocked from trading and squaring up positions

Impact Assessment

High Impact on Trading Members:

  • Trading Members must urgently complete pending KYC uploads to avoid client trading restrictions
  • Non-compliance affects client ability to trade and square up positions
  • Potential operational disruption if significant number of clients remain non-compliant

High Impact on Clients:

  • Clients with unvalidated KRA status will face trading restrictions after January 30, 2026
  • Cannot square up open positions if KRA status remains unvalidated
  • May experience inconvenience and potential losses if positions cannot be closed

Market Impact:

  • Essential for ensuring seamless interoperability across market participants
  • Strengthens investor protection and KYC verification framework
  • Reduces regulatory arbitrage and improves market integrity

Contact Information:

Impact Justification

Critical compliance requirement affecting all Trading Members with strict deadline and trading restrictions for non-compliant client accounts