Finance Minister Calls on SEBI to Simplify and Unify KYC Norms Across Securities Market
Nirmala Sitharaman urges SEBI to simplify and unify KYC norms.
Finance Minister Nirmala Sitharaman on Saturday called on the Securities and Exchange Board of India (SEBI) to take a leading role in streamlining Know Your Customer (KYC) norms across the financial sector, urging the creation of a common, seamless and digitalised verification system for investors and citizens.
Speaking at SEBI’s 38th foundation day event, Sitharaman emphasized that the regulator should drive the adoption of unified KYC standards and simplify processes across India’s securities market. She said SEBI has the institutional strength, digital infrastructure, and scale of investor participation to lead such reforms effectively.
The Finance Minister highlighted that citizens should not be required to undergo repeated identity verification for different financial products or platforms. She described this as a shared responsibility among all stakeholders in the financial ecosystem and stressed the need for urgent collective action to improve user experience in financial services.
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Sitharaman also noted that the issue of a portable and secure KYC framework had already been discussed within the Financial Stability and Development Council (FSDC). She reiterated that a fully integrated system would enhance efficiency, reduce friction, and strengthen trust in India’s financial markets.
In addition, she called for deeper structural reforms in India’s bond market, stating that SEBI must act as a “convening and coordinating force” to strengthen market infrastructure. She urged a stronger push for municipal bonds and the development of a more robust credit enhancement framework to broaden investment opportunities and market participation.
The Finance Minister also warned of emerging risks posed by artificial intelligence in financial systems. She flagged potential cybersecurity threats such as automated system exploitation, malicious code interference, supply chain attacks, and adaptive cyber intrusions. Sitharaman stressed that regulators must remain prepared to address these evolving challenges to safeguard India’s financial stability.
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