BSE: clients with KYC On Hold at a KRA cannot trade or square off from 21 November 2026
TaxByKK · Compliance News · taxbykk.com9 Nov 2026
In short
BSE has told all trading members that clients whose KYC is still On Hold at a KYC Registration Agency (KRA), for records uploaded to the KRA between 1 October and 31 October 2026, will not be permitted to trade, and cannot square off open positions, from 21 November 2026 until they complete the validation. Open positions will run to the expiry of the contract. A client who becomes KRA compliant later can trade again on T+1. The notice also reminds members that only clients with KRA status KYC Registered or KYC Validated may trade.
- Authority
- BSE Limited
- Notice
- Notice No. 20261109-28 (Compliance, Department DOSS)
- Date
- 9 November 2026
- Type
- Notice to all trading members of the Exchange
- Effective from
- 21 November 2026
- Records covered
- KYC records uploaded to a KRA from 1 October 2026 to 31 October 2026 and found On Hold (Aadhaar-based and non-Aadhaar OVD)
- Underlying SEBI circulars cited
- SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 of 11 August 2023; SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/163 of 3 October 2023; SEBI/HO/MIRSD/SECFATF/P/CIR/2023/169 of 12 October 2023
What changed
| Item | Before | Now |
|---|---|---|
| Clients whose KYC at a KRA is On Hold (October 2026 uploads) | Allowed to trade | Not permitted to trade or square off open positions from 21 November 2026, until they meet the validation requirements; positions expire on the contract expiry date |
| Clients that become KRA compliant later | - | Permitted to trade on T+1, based on the information the Exchange receives from the KRA on T day |
| Deceased-investor accounts | - | Members are reminded that SEBI's 3 October 2023 circular requires debits to be blocked, trading suspended and the UCC inactivated or closed; the KRAs share demise data daily |
The notice sets 21 November 2026, where the NCDEX circular on the same subject sets 23 November. The names of the affected clients are in a file on the Exchange's member folder, not in the notice. It does not say what a member should do with margin or funds in a blocked account.
Who it applies to
- BSE trading members and their compliance officers
- Clients with KYC On Hold at a KRA
- Investors whose PAN has no KRA record
- CAs and company secretaries advising brokers and investors
What to do
- Download the list of PANs marked On Hold and Not Available from the UCC menu of the Exchange system and the Non_Validated_Clients file in the member folder.
- Ask affected clients to complete the pending KYC step before 21 November 2026.
- Upload KYC to the KRA for clients with no record.
- Keep only clients with KRA status KYC Registered or KYC Validated active for trading.
Reference
BSE Notice No. 20261109-28 dated 9 November 2026, Guidelines in pursuance of amendment to SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011.
Read the official PDF: BSE notice 9 Nov 2026Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
From when are On Hold clients barred on BSE?
From 21 November 2026, for KYC records uploaded to the KRA from 1 to 31 October 2026.
Can a barred client close open positions?
No. The notice says they cannot square off; the positions expire on the contract expiry date.
How does a barred client trade again?
By becoming KRA compliant. Trading is then permitted on T+1.