NRIs may soon complete KYC remotely as SEBI expands digital investor protection
Mumbai: The Securities and Exchange Board of India (SEBI) is in advanced discussions with the UIDAI and the Reserve Bank of India (RBI) to enable secure, remote KYC access for non-resident Indians (NRIs), currently under a testing phase.
SEBI Chairman Tuhin Kanta Pandey said the initiative is a top priority to ensure NRIs do not need to travel to India for KYC compliance.
“It will be a major development once operational," Pandey said during an event organised by the BSE Brokers Forum (BBF) here. On the surveillance front, he said "we are moving from reactive supervision to predictive oversight.”
Pandey added that SEBI has revamped its data warehouse system to create rule-based alerts capable of identifying pump-and-dump schemes and detecting fraudulent trades in bulk deals. He emphasised that such manipulative schemes follow identifiable patterns, which can now be tracked using data-driven technology.
SEBI is also exploring a safety net mechanism for depository participants (DPs). “We are examining the implementation of a safety net so that in the case of an outage at a depository participant, the issue can be handled at the depositories' end - similar to what exists for stock brokers,” he said.
The SEBI Chairman highlighted that several regulatory measures have already been implemented following detailed data analysis. On foreign portfolio investor (FPI) registration, he said SEBI aims to further simplify the process.
“FPI registration is a window to the world, and if the window itself has cobwebs, it won't shine in its glory. This is not about risk; it's about identifying and addressing operational issues,” Pandey said. He also reiterated that protecting investors from cyber fraud and misleading advice by unregistered financial influencers remains a key priority.
Earlier, during a panel discussion at the Global Fintech Fest (GFF) 2025, Pandey said technology-led initiatives, such as the Investor Risk Reduction Access Platform and a Unified Investor App, have strengthened investor protection and market efficiency.
These platforms offer consolidated access to holdings, transaction history, e-voting, and proxy advisory recommendations. “Grievance resolutions too have been streamlined with Digital Locker and an upgraded SEBI Complaints Redressal System (SCORES),” the SEBI Chairman added.
IANS