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Plans for digital KYC and simplified investment framework
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Sebi pushes for seamless NRI participation in Indian markets
Easing investment procedures for Non-Resident Indians (NRIs) has become an urgent priority for the Securities and Exchange Board of India (Sebi), according to Chairman Tuhin Kanta Pandey.
Speaking at an event hosted by the Bombay Stock Exchange Brokers’ Forum, Pandey said Sebi is working on streamlining compliance processes and making it easier for NRIs to invest in Indian capital markets without the need to visit 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 noted, adding that Sebi is collaborating with the Reserve Bank of India (RBI) and the Unique Identification Authority of India (UIDAI) to build a digital KYC system for NRIs.
With more than 3.5 crore NRIs worldwide and India receiving around USD 135 billion in remittances during FY25, Sebi aims to unlock this vast pool of potential investors. The push comes at a time when domestic retail investment growth has slowed, including a dip in systematic investment plan (SIP) inflows.
Pandey also outlined Sebi’s broader agenda to make India’s capital markets more investor-friendly. Following the recent introduction of a single-window, simplified compliance framework for foreign portfolio investors (FPIs), Sebi plans to move to a fully portal-based registration system. “We are already consulting stakeholders to implement it. Our goal is to be among the best globally in facilitating registration,” he said.
Encouraging innovation across financial products, Pandey emphasised the potential of “Chhota SIPs” (small-ticket investments) and commodity derivatives. Sebi, he said, will address issues related to taxation, delivery, and GST to help these segments grow and contribute to a more resilient market ecosystem
On the domestic front, Sebi is working with the RBI and the Income Tax Department to fully digitise registration and compliance processes while ensuring strong risk management systems. The regulator is also revising broker regulations — expected to be finalised by December — and ramping up cybersecurity measures, including new norms for “air-gapped” systems and redundancy mechanisms for clearing corporations.
Sebi has also adopted a data-driven, predictive oversight model to better detect fraudulent activities such as pump-and-dump schemes. With algorithmic and high-frequency trading becoming more prominent, the regulator is updating its framework to ensure transparency and market integrity.
Highlighting the need for deeper market liquidity — with daily cash equity volumes averaging around ₹1 lakh crore — Pandey said Sebi will review the stock lending and borrowing mechanism (SLBM) and continue reforms in the short-term derivatives market to improve investor protection and awareness.
