NCDEX: clients with KYC On Hold at a KRA cannot trade or square off from 23 November 2026
TaxByKK · Compliance News · taxbykk.com9 Nov 2026
In short
NCDEX has told its trading members that clients whose KYC status at a KYC Registration Agency (KRA) is still On Hold, for records uploaded to the KRA till 31 October 2026, will not be allowed to trade, and will not be allowed to square off open positions, from 23 November 2026. Open positions can run to their contract expiry. Clients whose PAN has no record at a KRA are covered too. A client who later becomes KRA-compliant can trade again on T+1.
- Authority
- NCDEX Limited (commodity derivatives exchange)
- Circular
- NCDEX/MEMBERSHIP-050/2026
- Date
- 9 November 2026
- Type
- Circular to all members of the Exchange
- Effective from
- 23 November 2026
- Records covered
- KRA records uploaded till 31 October 2026 with status On Hold, and PANs with status Not Available
- Underlying SEBI circulars cited
- SEBI/HO/MIRSD/FATF/P/CIR/2023/0144 of 11 August 2023; SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/0000000163 of 3 October 2023
What changed
| Item | Before | Now |
|---|---|---|
| Clients whose KYC status at the KRA is On Hold (Aadhaar-based or non-Aadhaar OVD), records uploaded till 31 October 2026 | Allowed to trade | Not allowed to trade or square off open positions from 23 November 2026, until compliant; open positions may expire on the contract expiry date |
| PANs with KRA status Not Available (not uploaded by the member) | Allowed to trade | Not allowed to trade from 23 November 2026 |
| Clients that become KRA compliant later | - | Permitted to trade on T+1, based on information from the KRA |
The circular lists the affected clients in a file on the Exchange extranet, not in the document. It does not say what a member should do about margin or funds in a blocked account, and it does not repeat the SEBI rule behind the cut-off.
Who it applies to
- NCDEX trading members and their compliance officers
- Commodity derivatives clients with KYC On Hold at a KRA
- Clients whose KYC was never uploaded to a KRA
- CAs and company secretaries advising brokers and investors
What to do
- Download the file <TMCode>_<TMCode>_KRA_NOT_AVAILABLE from the Exchange extranet (Download files, Reports) and list the affected clients.
- Ask clients with On Hold status to complete the pending KYC step before 23 November 2026.
- Upload KYC for clients with no KRA record.
- Keep only clients with KRA status KYC Registered or KYC Validated active for trading.
Reference
NCDEX Limited Circular No. NCDEX/MEMBERSHIP-050/2026 dated 9 November 2026, Guidelines in pursuance of amendment to SEBI KYC (Know Your Client) Registration Agency (KRA) Regulations, 2011.
Read the official PDF: NCDEX circular 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?
From 23 November 2026.
Can they close their open positions?
The circular says they cannot square off; open positions are allowed to expire on the contract expiry date.
How does a barred client resume trading?
By becoming KRA compliant; trading is then permitted on T+1 based on information received from the KRA.