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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Implementation of risk reduction mode for non-compliant clients under SEBI KYC

04-Aug-2024 | Circular Ref. No: 39/2024

NSE has issued a circular in reference to circular download reference no. NSE/ISC/62767 dated July 04,2024, wherein it was informed that those clients whose KYC details are not found to be validated, won't be permitted to Trade on the Exchange nor will they be able to square up their positions, if any, w.e.f August 03, 2024.

Through this circular, NSE has decided to provide extension to the subject to certain conditions:
i) The Trading Members shall put such non-compliant clients in "Risk Reduction Mode"
ii) The above facility is only for three days i.e. from Monday August 05, 2024, to Wednesday August 07, 2024.
iii) Trading Members to implement this risk reduction mode for its non-compliant clients.
iv) 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).

Please refer to the circular for more information.

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