Easing investment procedures for non-resident Indians (NRIs) is an “urgent goal” for Sebi , Chairman Tuhin Kanta Pandey said on Saturday, highlighting plans to simplify compliance and expand participation in Indian capital markets. Speaking at an event organised by the Bombay Stock Exchange Brokers’ Forum, Pandey emphasised the need for NRIs to complete know-your-customer (KYC) formalities without travelling to India.
“We are yet to establish an easy and secure KYC access for NRIs to facilitate their participation in the securities market. This will be an urgent goal for us,” Pandey said, adding that Sebi is coordinating with the RBI and the Unique Identification Authority of India to develop a digital system for NRIs, PTI reported.
With over 3.5 crore NRIs globally and India receiving USD 135 billion in remittances in FY25, Pandey said simplifying access to the markets could help tap a vast pool of investors. The move comes amid a slowdown in domestic retail investment, including a declining trend in systematic investment plan (SIP) inflows.
Pandey also outlined Sebi’s broader agenda for foreign portfolio investors (FPIs). Following September’s announcement of a single-window, lighter compliance framework, Sebi aims to make FPI registration simple and fully portal-based. “We are already consulting our stakeholders to implement it … we would like to be among the best in the world in terms of facilitating registration,” he said.
On domestic market infrastructure, Pandey stressed that Sebi, the RBI, and Income Tax authorities will collaborate to digitise registration while maintaining robust risk controls. The regulator is also revising broker regulations, expected to be completed by December this year, and strengthening cybersecurity measures, including guidelines for “air gap” systems and redundancy for clearing corporations.
Sebi has moved toward predictive oversight, revamping its data warehouse to generate role-based alerts to detect fraudulent trades and pump-and-dump schemes. Pandey noted the rising prominence of algorithmic and high-frequency trading in equity and derivatives markets, with Sebi updating its regulatory framework to ensure transparency and market integrity.
Cash equity volumes, hovering around Rs 1 lakh crore daily, prompted Pandey to highlight the need for deeper liquidity. Sebi will also review the stock lending and borrowing mechanism (SLBM) and continue consultative reforms in short-term derivatives markets to safeguard investor suitability and risk awareness.
Pandey encouraged innovation across financial instruments to enhance market resilience and capital raising. He specifically noted potential growth in Chhota SIPs and commodity derivatives, promising Sebi support in addressing tax, delivery, and GST-related challenges to unlock their market potential.
“We are yet to establish an easy and secure KYC access for NRIs to facilitate their participation in the securities market. This will be an urgent goal for us,” Pandey said, adding that Sebi is coordinating with the RBI and the Unique Identification Authority of India to develop a digital system for NRIs, PTI reported.
With over 3.5 crore NRIs globally and India receiving USD 135 billion in remittances in FY25, Pandey said simplifying access to the markets could help tap a vast pool of investors. The move comes amid a slowdown in domestic retail investment, including a declining trend in systematic investment plan (SIP) inflows.
Pandey also outlined Sebi’s broader agenda for foreign portfolio investors (FPIs). Following September’s announcement of a single-window, lighter compliance framework, Sebi aims to make FPI registration simple and fully portal-based. “We are already consulting our stakeholders to implement it … we would like to be among the best in the world in terms of facilitating registration,” he said.
On domestic market infrastructure, Pandey stressed that Sebi, the RBI, and Income Tax authorities will collaborate to digitise registration while maintaining robust risk controls. The regulator is also revising broker regulations, expected to be completed by December this year, and strengthening cybersecurity measures, including guidelines for “air gap” systems and redundancy for clearing corporations.
Sebi has moved toward predictive oversight, revamping its data warehouse to generate role-based alerts to detect fraudulent trades and pump-and-dump schemes. Pandey noted the rising prominence of algorithmic and high-frequency trading in equity and derivatives markets, with Sebi updating its regulatory framework to ensure transparency and market integrity.
Cash equity volumes, hovering around Rs 1 lakh crore daily, prompted Pandey to highlight the need for deeper liquidity. Sebi will also review the stock lending and borrowing mechanism (SLBM) and continue consultative reforms in short-term derivatives markets to safeguard investor suitability and risk awareness.
Pandey encouraged innovation across financial instruments to enhance market resilience and capital raising. He specifically noted potential growth in Chhota SIPs and commodity derivatives, promising Sebi support in addressing tax, delivery, and GST-related challenges to unlock their market potential.
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