Description

NSE instructs trading members to mark inactive or close all Unique Client Codes (UCCs) not verified by KRA by April 30, 2026, in line with SEBI's KYC simplification circular from August 2023.

Summary

NSE has directed all trading members to mark inactive or close all Unique Client Codes (UCCs) that have not been verified by KRA (KYC Registration Agency) by April 30, 2026. This directive stems from SEBI Circular SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 dated August 11, 2023, which prohibits clients with unverifiable KYC attributes from transacting in the securities market.

Key Points

  • All UCCs with Non-Verified KRA status must be marked inactive or closed by April 30, 2026.
  • The directive is based on SEBI Circular No. SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 (August 11, 2023) on simplification of KYC process and rationalisation of KRA risk management framework.
  • Clients whose KYC attributes cannot be verified by a KRA are not permitted to transact in the securities market.
  • Non-compliance will be viewed seriously by NSE.
  • Members with KRA status queries should contact respective KRAs directly.
  • Exchange-level queries can be directed to uci@nse.co.in.

Regulatory Changes

This circular enforces the existing SEBI mandate (Circular Ref No. 16/2026, Download Ref: NSE/ISC/73596) requiring that clients with unverifiable KYC attributes be barred from securities market transactions. NSE is now setting a hard deadline for trading members to act on all non-verified UCCs.

Compliance Requirements

  • Trading Members must identify all UCCs in their systems that have a Non-Verified KRA status.
  • Each such UCC must be marked as inactive or closed before the deadline.
  • Members should coordinate with the relevant KRAs to resolve any KRA status issues for clients who wish to continue trading.
  • Contact uci@nse.co.in for any Exchange-related queries; contact respective KRAs directly for client KRA status issues.

Important Dates

  • April 02, 2026 — Circular issued by NSE.
  • April 30, 2026 — Deadline for trading members to mark inactive/close all UCCs with Non-Verified KRA status.

Impact Assessment

This directive has significant operational impact on trading members who must audit their client databases and take action on all non-KRA-verified UCCs. Clients affected by this action will be unable to transact in securities markets until their KYC attributes are verified by a KRA. Firms with large client bases may need to undertake substantial remediation efforts before the April 30 deadline. Non-compliance carries regulatory risk as NSE has explicitly stated it will be viewed seriously.

Impact Justification

Mandatory compliance deadline of April 30, 2026 for all trading members to close/inactivate unverified UCCs; non-compliance will be viewed seriously by the Exchange, directly affecting client trading access.