NSE Circular on: Adherence to KYC Requirements

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Date	Issuer	Subject	Topic
08-08-2022	NSE	Adherence to KYC Requirements	KYC
Highlights of NSE Circular dated August 08, 2022 Adherence to KYC Requirements Further to SEBI circular CIR/MIRSD/16/2011 dated August 22, 2011, regarding norms prescribed for Simplification and Rationalization of Trading Account Opening Process and Exchange circulars NSE/INVG/22755 dated February 15, 2013 and NSE/ISC/42940 dated December 18, 2019, NSE has directed Trading Members to: ·        send the identity and address proof of all the newly onboarded clients (irrespective of whether PAN has been submitted by account holder or not) to the Exchange, where the correspondence or permanent address of the client is ‘Sikkim’. ·        The documents should be sent via email on u...@nse.co.in. In case of any deviations observed by the Exchange during the scrutiny of records, the same shall be informed to the trading member for necessary corrective actions. However, in absence of corrective action by the trading member within 10 days from the date of intimation of the discrepancy, then trading member shall mark such account as closed with immediate effect and discrepant UCCs shall be considered as non-compliant and not permitted to trade. The Exchange may take any other disciplinary action that it may deem fit. Further, for the existing UCCs having correspondence or permanent address as ‘Sikkim’, irrespective of the status (active / inactive) marked in the UCC system of the Exchange, the trading members are required to carry out KYC re-confirmation exercise (i.e., verification of existing KYC documents available, against the details uploaded in the UCC system of the Exchange). carry out this activity of KYC re-confirmation (verification and certification) by an Auditor appointed by the trading member, which could be any ‘qualified Chartered Accountant’ or a ‘Company Secretary’ or a ‘Cost and Management Accountant’ holding a certificate of Practice. Complete the above requirement along with submission of final audit report, not later than September 15, 2022. submit a duly signed certification on the letter head of the Auditor, as per the format provided under Annexure I of this Circular. email the said certification at u...@nse.co.in, with ‘Verification and Certification of KYC Compliance for the Sikkim based clients (TM Code. XXXXX)’, as the subject of the email communication. Carry out this activity for all the clients (where the correspondence or permanent address of the client is ‘Sikkim’) registered till June 30, 2022. In the instances, where adverse observations are highlighted by the Auditor, the trading member: ·        will give a 30 days’ notice to the client for rectification of records. In case the client fails to take corrective action within 30 days, the trading member shall mark such account as closed with immediate effect, under intimation to the client. In case the discrepancies/ error is on the part of the trading member, the same shall be rectified by the trading member within 15 days from the date the observations pointed out by the Auditor. Auditor would also be required to certify the compliance OR closure of the discrepant UCCs, not later than October 15, 2022. In case of any clarification or assistance required in implementation of this circular you may contact Vandana Vania– van...@secmark.in / 9223303460        Kaushik Jethwa – kau...@secmark.in / 9870210171

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