Tuhin Kanta Pandey, the chairman of the Securities and Exchange Board of India (SEBI), underscored the pressing need to create a streamlined and secure Know Your Customer (KYC) process for Non-Resident Indians (NRIs) to enhance their engagement in the securities market.
Speaking at the BFF Capital Market Confluence 2025 in Mumbai, Pandey explained that although SEBI has made strides in simplifying KYC regulations and permits transactions in securities right after KYC completion, the procedures for NRIs require further refinement. He stated, “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 securities market; this will be an urgent goal for us.”
Pandey emphasized that a robust market thrives on broad and informed participation. He referenced a recent nationwide survey indicating that while 63% of households are aware of securities products, only 9.5% are actively involved in investing. Participation rates show a marked disparity, with 15% in urban areas compared to 6% in rural regions, which aligns with general expectations.
Moreover, the survey highlighted that merely 36% of investors possess a high or moderate understanding of the securities market, revealing a significant knowledge gap. Pandey remarked on the scale of India’s securities infrastructure, noting, “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.”
He laid out SEBI’s strategic components for sustaining market resilience, prioritizing the adoption of advanced technology. He acknowledged the growth in algorithmic and high-frequency trading, which constitutes a substantial proportion of equity and derivatives market volume. SEBI intends to keep its regulatory framework updated to ensure a fair, transparent, and resilient market.
Regarding cybersecurity, Pandey cautioned that an attack on a single entity could threaten the entire financial ecosystem. He noted, “We have issued a comprehensive cybersecurity and cyber-resilience framework. Guidelines identifying clear gaps, a key component, will be issued in consultation with Market Infrastructure Institutions (MIIs). Our MIIs are being stress-tested with live disaster recovery drills. We have implemented redundancy models for peering corporations and are evaluating safety nets for depository participant outages, as implemented for soft brokers.”
The discussion culminated with a call for increased awareness and participation in the securities market, emphasizing the ongoing efforts to enhance the overall ecosystem.
Published on October 12, 2025.
