The National Stock Exchange (NSE) on March 10, 2026, issued the guidelines in pursuance of the amendment to SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011.
The following has been stated:
• It informs trading members that client KYC records uploaded to KRAs between February 01, 2026, and February 28, 2026, which remain “On Hold” or not validated (whether Aadhaar-based or non-Aadhaar OVD-based) will face trading restrictions.
• From March 21, 2026, such clients will not be permitted to trade on the exchange and will also not be allowed to square off their open positions until the KYC validation requirements are fulfilled. Any open derivative positions will remain until the contract expiry date, after which they will automatically expire. The Exchange will mark the PANs of non-compliant clients as “Not Permitted to Trade”, based on information received from KRAs.
• The circular also reiterates SEBI guidelines regarding the centralized mechanism for reporting the death of investors, under which regulated entities shall block debit transactions, suspend trading accounts, and inactivate the UCC once demise information is reported through KRAs.
• Lists of non-validated clients will be made available to trading members on the member portal, and once KYC becomes compliant, the client will be allowed to trade from T+1 day based on updated information received from KRAs.
[Notification no. - NSE/ISC/73218]
