Mumbai: The Securities and Exchange Board of India (SEBI) is in advanced discussions with UIDAI and RBI to facilitate secure remote KYC access for non-resident Indians (NRIs), which is currently in the testing phase. SEBI Chairman Tuhin Kanta Pandey stated that this initiative is a priority to ensure NRIs do not need to travel to India for KYC processes. He remarked, “It will be a significant development once it becomes operational,” during an event hosted by the BSE Brokers Forum (BBF) in Mumbai.
Regarding surveillance, he mentioned, “We are transitioning from reactive supervision to predictive oversight.” He added that the data warehouse system has been overhauled to create new rule-based alerts aimed at identifying pump-and-dump schemes and detecting fraudulent trades in bulk transactions. According to the SEBI Chairman, pump-and-dump schemes exhibit recognizable patterns, as shown in SEBI orders, and the new technology will assist in monitoring such manipulative practices through data-driven insights. SEBI is also developing a safety net mechanism for depository participants (DPs). He explained that they are considering implementing a safety net so that issues arising from outages at a depository participant can be managed at the depositories’ end, similar to existing provisions for stock brokers.
The SEBI Chairman noted that several regulatory measures have already been enacted following comprehensive data analysis. Regarding foreign portfolio investor (FPI) registration, he indicated that SEBI aims to streamline the process further. “FPI registration is a gateway to the world; if that gateway is obstructed, it loses its appeal. This is not merely about risk; it involves identifying and resolving operational challenges,” he stated. Pandey emphasized that safeguarding investors from cyber fraud and misleading guidance from unregistered financial influencers is a primary focus for SEBI.
