The National Stock Exchange (NSE) on August 18, 2023 issued a circular regarding compliance with the Guidelines in pursuance of amendment to SEBI KYC Registration Agency KRA Regulations, 2011
This has a reference to the SEBI circular-SEBI/HO/MIRSD/DoP/P/CIR/2022/46 dated April 06, 2022, SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 dated August 11, 2023, NSE/ISC/56457 dated April 21, 2023, and NSE/ISC/57977 dated August 16, 2023, on “Guidelines in pursuance of amendment to SEBI KYC Registration Agency (KRA) Regulations, 2011” and “Simplification of KYC process and rationalization of Risk Management Framework at KYC (Know Your Client) Registration Agencies (KRAs)
The following has been stated namely: -
• It is directed to take the following actions namely: -
(i) Validation by KRA: Prior to uploading any client record to the Exchange UCC database, ensure that the client's KYC details have been validated by the KRA. This includes verifying the authenticity of identity documents, address proofs, and other relevant information.
(ii) Timely Compliance: Adhere strictly to the timelines outlined in the above-mentioned SEBI circulars. Ensure that client records are validated by the KRA before initiating any trading activity on their behalf.
(iii) Records of Compliance: Maintain comprehensive records of client validation by the KRA. These records should be readily accessible for inspection by regulatory authorities upon request.
(iv) Communication: Regularly communicate with your clients regarding the importance of timely KYC validation and its impact on their trading activities.
• t has been decided that clients whose KYC are not found valid by KRA, such UCCs shall neither be Permitted to Trade on the Exchange nor will they be able to square up their open positions, if any, w.e.f. September 02, 2023, until they comply with the aforesaid requirement.
• It is advised to specifically monitor the open positions of such clients whose KYC is not found valid by KRA and take appropriate measures to ensure compliance with the above.
[Circular No. NSE/ISC/58027]
