Description

NSE forwards SEBI communication regarding UNSC Security Council Committee's removal of one entry from the ISIL (Da'esh) and Al-Qaida Sanctions List (SC/16306, February 27, 2026). Members must scan accounts and ensure compliance with Section 51A of UAPA, 1967.

Summary

NSE has forwarded a SEBI communication regarding updates to the UNSC’s 1267/1989 ISIL (Da’esh) and Al-Qaida Sanctions List. The UNSC Security Council Committee (per resolutions 1267/1999, 1989/2011, and 2253/2015) removed one entry from the sanctions list via press note SC/16306 dated February 27, 2026. All NSE members are directed to take note and ensure compliance with Section 51A of the Unlawful Activities (Prevention) Act, 1967.

Key Points

  • UNSC press note SC/16306 (February 27, 2026) removed one individual/entity from the ISIL (Da’esh) and Al-Qaida Sanctions List.
  • The assets freeze, travel ban, and arms embargo associated with the removed entry are lifted.
  • NSE Circular Ref. No: 13/2026 (Download Ref: NSE/ISC/73243) issued by the Investor Services Cell.
  • Members must scan all existing accounts to verify no account is held by or linked to listed entities or individuals.
  • Future accounts must also be checked against the updated sanctions list.
  • De-listing requests must be forwarded electronically to Joint Secretary (CTCR), MHA at jsctcr-mha@gov.in with a copy to MEA Joint Secretary (UNP) at jsunp@mea.gov.in.
  • Updated sanctions lists are available on the UN Security Council website and SEBI website under “Media and Notifications” > “UNSC Sanctions Committee List”.

Regulatory Changes

One entry has been removed from the UNSC ISIL (Da’esh) and Al-Qaida Sanctions List. The applicable sanctions lists are:

Compliance Requirements

  • Account Screening: Scan all existing and future client accounts to ensure no account is held by or linked to any sanctioned entity or individual per Clause 54 of SEBI’s AML/CFT Guidelines dated June 06, 2024.
  • Procedure: Follow the Central Government Order dated February 02, 2021 for implementation of Section 51A of the Unlawful Activities (Prevention) Act, 1967.
  • De-listing Requests: Forward any de-listing requests received to:
  • Ombudsperson: Inform individuals/entities seeking removal from the ISIL (Da’esh) and Al-Qaida Sanctions List that they may apply to the UN-appointed independent Ombudsperson at https://www.un.org/securitycouncil/ombudsperson/application.
  • Regular Monitoring: Visit the SEBI website regularly for further updates to the UNSC Sanctions Committee List.

Important Dates

  • February 27, 2026: UNSC press note SC/16306 issued; one entry removed from sanctions list.
  • March 11, 2026: NSE circular issued to all members.
  • June 06, 2024: Reference date of SEBI AML/CFT Guidelines (Clause 54) governing account screening obligations.
  • February 02, 2021: Reference date of Central Government Order for Section 51A UAPA implementation.

Impact Assessment

This is a routine but mandatory compliance update. The removal of one entry from the sanctions list means members should update their screening databases to reflect the change. While the immediate market impact is low (no new restrictions imposed), non-compliance with AML/CFT obligations under SEBI guidelines and UAPA Section 51A carries significant regulatory risk. All securities market intermediaries must ensure their KYC/AML systems are updated with the latest UNSC sanctions list and that account screening processes are operational for both existing and new accounts.

Impact Justification

Mandatory compliance circular requiring all NSE members to scan existing and future accounts against updated UNSC sanctions list; non-compliance with AML/CFT obligations carries regulatory risk. Operational impact is medium as it is a routine update (removal of one entry) rather than an addition.