In a major step towards deepening overseas participation in India’s capital markets, Securities and Change 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 Change Brokers’ Discussion board on October 11, Pandey stated SEBI’s speedy purpose is to make sure NRIs now not must journey to India to finish their KYC necessities.
“We’re but to set up a simple and safe KYC entry for NRIs to facilitate their participation within the securities market. This can be an pressing purpose for us,” Pandey stated.
Distant KYC for international Indian buyers
SEBI is presently 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 dwelling overseas and $135 billion in remittances flowing into the nation in FY25, SEBI believes that easing market entry for the diaspora might unlock important 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 quicker FPI registration
Pandey additionally introduced measures to simplify the registration course of for overseas portfolio buyers (FPIs) by way of a single-window, digital portal.
“We’re already consulting stakeholders to implement it… we want to be among the many finest on the earth by way of facilitating registration,” he stated, including that the method must be “quick, environment friendly, and safe.”
He clarified that these are largely “course of points” and don’t entail important dangers. SEBI is working with the RBI and the Earnings Tax Division to digitise FPI registration and compliance techniques.
Cybersecurity & Market resilience
The SEBI chief underlined ongoing reforms to bolster cybersecurity and market infrastructure resilience. The regulator is introducing new “air hole” safety pointers in collaboration with market infrastructure establishments (MIIs) and has launched reside catastrophe restoration drills and redundancy fashions for clearing firms.
“MIIs are being stress-tested with reside catastrophe restoration drills,” Pandey stated.
Predictive surveillance & Algorithmic oversight
On market supervision, Pandey stated SEBI is shifting towards predictive surveillance utilizing superior information analytics to detect fraud and market manipulation.
“We’re growing role-based alerts to establish pump-and-dump patterns and fraudulent trades in bulk offers,” he famous, referring to the rising function of algorithmic and high-frequency buying and selling in India’s markets.
Pandey additionally highlighted SEBI’s efforts to overview 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 range in monetary devices is vital to resilience. On ‘Chhota SIPs’, he acknowledged sluggish progress however assured steps to unlock their potential. Pandey additionally stated SEBI is addressing tax, supply, and GST challenges within the commodity derivatives section to spur progress.
“These reforms mirror SEBI’s dedication to creating a good, clear, and resilient market,” Pandey concluded.
