In a major step towards deepening overseas participation in India’s capital markets, Securities and Trade Board of India (SEBI) Chairman Tuhin Kanta Pandey introduced that the regulator is prioritising the simplification of Know Your Buyer (KYC) procedures for non-resident Indians (NRIs) to allow distant onboarding.
Talking at an occasion organised by the Bombay Inventory Trade Brokers’ Discussion board on October 11, Pandey mentioned SEBI’s rapid objective is to make sure NRIs now not must journey to India to finish their KYC necessities.
“We’re but to set up a straightforward and safe KYC entry for NRIs to facilitate their participation within the securities market. This will probably be an pressing objective for us,” Pandey mentioned.
Distant KYC for international Indian traders
SEBI is at the moment in discussions with the Reserve Financial institution of India (RBI) and the Distinctive Identification Authority of India (UIDAI) to construct a framework permitting NRIs to finish KYC verification remotely. With over 3.5 crore Indians residing overseas and $135 billion in remittances flowing into the nation in FY25, SEBI believes that easing market entry for the diaspora may unlock vital funding potential.
The transfer comes amid a latest slowdown in retail investor exercise, marked by a dip in Systematic Funding Plan (SIP) inflows.
Push for sooner FPI registration
Pandey additionally introduced measures to simplify the registration course of for overseas portfolio traders (FPIs) by a single-window, digital portal.
“We’re already consulting stakeholders to implement it… we wish to be among the many finest on this planet when it comes to facilitating registration,” he mentioned, including that the method must be “quick, environment friendly, and safe.”
He clarified that these are largely “course of points” and don’t entail vital dangers. SEBI is working with the RBI and the Revenue Tax Division to digitise FPI registration and compliance programs.
Cybersecurity & Market resilience
The SEBI chief underlined ongoing reforms to bolster cybersecurity and market infrastructure resilience. The regulator is introducing new “air hole” safety tips in collaboration with market infrastructure establishments (MIIs) and has launched reside catastrophe restoration drills and redundancy fashions for clearing companies.
“MIIs are being stress-tested with reside catastrophe restoration drills,” Pandey mentioned.
Predictive surveillance & Algorithmic oversight
On market supervision, Pandey mentioned SEBI is transferring towards predictive surveillance utilizing superior knowledge analytics to detect fraud and market manipulation.
“We’re creating role-based alerts to determine pump-and-dump patterns and fraudulent trades in bulk offers,” he famous, referring to the rising position of algorithmic and high-frequency buying and selling in India’s markets.
Pandey additionally highlighted SEBI’s efforts to assessment the Inventory Lending and Borrowing Mechanism (SLBM) to make sure higher danger administration, whereas promising a consultative method to insurance policies governing short-term derivatives.
He urged stakeholders to drive innovation in capital markets, noting that variety in monetary devices is essential to resilience. On ‘Chhota SIPs’, he acknowledged sluggish progress however assured steps to unlock their potential. Pandey additionally mentioned SEBI is addressing tax, supply, and GST challenges within the commodity derivatives section to spur progress.
“These reforms replicate SEBI’s dedication to creating a good, clear, and resilient market,” Pandey concluded.
