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Key Points

SEBI Chairman Tuhin Kanta Pandey has identified simplifying KYC access for NRIs as an urgent priority. He revealed that despite 63% household awareness of securities, only 9.5% actually invest in markets. The survey shows a significant urban-rural divide with 15% urban participation versus 6% in rural areas. Pandey emphasized protecting investor trust while managing the massive daily volume of 1,600 crore messages through stock exchanges.

Key Points: SEBI Chief Pandey Urges Easy NRI KYC Access for Markets

  • SEBI aims to streamline KYC process specifically for Non-Resident Indian investors
  • Only 9.5% of Indian households actively participate in securities markets
  • Urban participation at 15% significantly outpaces rural areas at 6%
  • Stock exchanges handle over 1,600 crore messages daily requiring robust cybersecurity
  • Algorithmic trading accounts for significant volumes in equity derivatives markets
  • Just 36% of investors possess moderate to high market knowledge
3 min read

SEBI Chief says, establishing easy, secure KYC access for NRIs for market participation is urgent goal

SEBI Chairman Tuhin Kanta Pandey prioritizes simplified NRI KYC process to boost market participation, reveals only 9.5% household investment rate

"We are yet to establish an easy and secure KYC access for NRIs to facilitate their participation in the security market this will be an urgent goal for us - SEBI Chief Tuhin Kanta Pandey"

Mumbai, October 12

SEBI Chief Tuhin Kanta Pandey highlighted the urgent goal of establishing an easy and secure KYC access for Non-Resident Indians (NRIs) to facilitate their participation in the securities market.

Addressing the BFF Capital Market Confluence 2025 in Mumbai, he said that while SEBI has simplified KYC norms and allowed transactions and securities as soon as the process is completed, the system for NRIs still needs to be streamlined.

"We have a long way to go in investor awareness. We have simplified KYC norms and permitted transactions and securities as soon as this process is completed. However, we are yet to establish an easy and secure KYC access for NRIs to facilitate their participation in the security market this will be an urgent goal for us," Pandey said.

He emphasized that a resilient market is one with broad, deep, and informed participation.

Referring to a recent nationwide survey, Pandey pointed out that while 63 per cent of households are aware of securities products, only 9.5 per cent actively participate. Participation in urban areas is significantly higher at 15 per cent, compared to 6 per cent in rural regions, which aligns with expectations.

The survey also revealed that only 36 per cent of investors possess high or moderate knowledge of the securities market, indicating a considerable gap in awareness.

Highlighting the scale of India's securities infrastructure, the SEBI chief said, "On any given day, our stock exchanges handle a staggering volume of activity. In the last financial year, they processed an average of over 1,600 crore messages daily, with a peak of over 2,900 crore messages. Behind these numbers is the trust of crores of investors. This is the trust we must always protect."

Pandey outlined SEBI's strategic pillars for market resilience, starting with technology.

He noted the rapid growth of algorithmic and high-frequency trading, which currently accounts for significant volumes in equity and derivatives markets. SEBI will continue to update its regulatory framework to ensure a fair, transparent, and resilient market.

On cybersecurity, he warned that an attack on a single institution could destabilize the entire ecosystem.

"We have issued a comprehensive cyber-security and cyber-resilience framework. Guidelines for clear gaps, a key component, will be issued in consultation with MIIs. Our MIIs are being stress-tested with live disaster recovery drills. We have implemented redundancy models for peering corporations and are examining safety nets for depository participant outages, as done for soft brokers," he added.

- ANI

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Reader Comments

R
Rohit P
The awareness statistics are concerning - only 9.5% participation despite 63% awareness. SEBI should focus more on financial literacy programs in regional languages. Many people in smaller towns want to invest but don't know how to start.
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Arjun K
While I appreciate the focus on NRIs, I hope SEBI doesn't forget about domestic investors. The rural-urban participation gap (6% vs 15%) shows we need equal attention on making markets accessible to everyone across India. Jai Hind! 🙏
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Sarah B
The cybersecurity focus is crucial. With digital transactions increasing, we need robust systems to protect investor money. Good to see SEBI taking proactive measures with stress testing and redundancy models.
V
Vikram M
Finally some positive steps! My brother in Canada has been facing so many issues with documentation and verification. If they can make it as simple as Aadhaar-based KYC for residents, that would be amazing. More NRI investment will definitely boost our markets 💹
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Kavya N
I respectfully disagree with the urgency on NRI KYC. Shouldn't we first fix the basic issues for resident Indians? Many small towns still lack proper broker access and digital infrastructure. Priorities should be balanced better.

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