‘Regulator working on initiatives for easier investor onboarding, stronger compliance,' says SEBI chair Tuhin Kanta Pandey

Pandey noted that the regulator is prioritising simplified investor onboarding, particularly for retail clients and Non-Resident Indians (NRIs). SEBI aims to reduce repeat documentation and streamline re-KYC processes, allowing Key Repository Agencies (KRAs) to retain only updated records. Public consultations on these proposals are expected shortly.

• SEBI to simplify investor onboarding and re-KYC for retail clients and NRIs
• Penalty rationalization Phase II to include cyber incident and QSB obligations
• 2025 Securities Markets Code to unify three acts into a principle-based framework.

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The Securities and Exchange Board of India (SEBI) is working on key initiatives aimed at making India’s capital markets more accessible, resilient, and investor-friendly. SEBI chair Tuhin Kanta Pandey made this announcement at the 15th ANMI International Capital Market Convention.

Pandey noted that the regulator is prioritising simplified investor onboarding, particularly for retail clients and Non-Resident Indians (NRIs). SEBI aims to reduce repeat documentation and streamline re-KYC processes, allowing Key Repository Agencies (KRAs) to retain only updated records. Public consultations on these proposals are expected shortly.

On the ease of doing business front, SEBI will introduce Phase II of its penalty rationalization initiative, integrating newer obligations such as cyber incident reporting and Qualified Stock Broker (QSB) requirements into a fair framework. The move is expected to balance compliance enforcement with operational flexibility. Depository participant regulations are also under review to align with evolving market needs.

With cybersecurity increasingly critical, Pandey highlighted the regulators focus - protecting investors from emerging cyber threats like hacking and unauthorized access. “The industry must strengthen safeguards to secure client trading accounts and the overall trading environment for long-term participation,” the Chairman said.

Pandey also spoke about the regulator's market development priorities, including deepening India’s commodity, cash equities, derivatives, and corporate bond markets. Regulatory reforms and outreach programs are underway to boost municipal bond growth and explore bond derivatives to increase market depth.

Highlighting a long-term vision, Pandey noted that the Securities Markets Code, 2025, currently before Parliament, seeks to consolidate three separate acts into a unified, principle-based framework. He called for collaboration between regulators, market intermediaries, and investors to ensure smooth implementation and uphold market integrity.

“Growth has been remarkable, but sustainability will be driven by the convergence of technology, trade, and trust,” Pandey said. He urged the market to work collectively to create an ecosystem that is resilient, inclusive, and transparent.