The Multi Commodity Exchange of India Limited (MCX) on July 15, 2024, issued a circular regarding guidelines in pursuance of amendment to SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011.
The following has been stated: -
•It is informed that the clients whose KYCs are not found to be validated by KRAs i.e. where the KYCs are “On Hold” for any reasons (both AADHAAR and Non-AADHAAR based OVD) uploaded to the KRA from June 01, 2024, to June 30, 2024, shall neither be Permitted to Trade on the Exchange nor will they be allowed to square up their open positions, if any, w.e.f. July 29, 2024, until they comply with the validation requirements. Eventually, such open positions will naturally expire on the expiry date of the respective contract.
•All the members are advised to take note of the same and ensure that clients whose KYCs are not found to be validated by KRAs are not permitted to trade. Further, the members are also advised to specifically monitor the open positions, if any, of such clients and take appropriate measures to ensure compliance.
[Circular No. MCX/S&I/467/2024]
