The Bombay Stock Exchange (BSE) on August 04, 2024, issued the Guidelines in pursuance of amendment to SEBI KYC (Know Your client) Registration Agency (KRA) Regulations, 2011.
The following has been stated namely: -
• It was stated that the clients whose KYCs are not found to be validated by KRAs i.e. where the KYCs are “On Hold” for records (both Non-AADHAAR and Non-OVD based) uploaded to the KRA until August 31, 2023, shall neither be Permitted to trade on the the Exchange, nor will they be able to square off their open positions, if any, w.e.f. August 03, 2024, until they comply with the requirement.
• Extension are being provided on the following conditions namely: -
o The Trading Members shall put such non-compliant clients in "Risk Reduction Mode". This facility is only for three days i.e. from Monday – August 05, 2024, to Wednesday – August 07, 2024. It may be noted that no further extensions/request shall be entertained.
o It shall be the responsibility of the Trading Members to implement this risk reduction mode for its non-compliant clients.
o The Trading Members shall submit a report to the Exchange at the end of the day depicting the reduction in positions of the respective clients till the position is zero (the format shall be issued as an update to this circular).
[Notification No. 20240804-1]
