Regulators discuss common KYC norms

The Securities and Exchange Board of India (Sebi) is working with other regulatory bodies to create a mechanism for a single know-your-customer (KYC) norm for all financial products.

Addressing a session at the Confederation of Indian Industry’s annual general meeting, Sebi chairman U K Sinha on Tuesday said the market regulator was in talks with other regulators, including the Reserve bank of India and the Insurance Regulatory and Development Authority on common KYC norms for the financial sector. “We are in dialogue with the banking regulator and the insurance regulator. We are working towards that. In the near future, one KYC with any one of the KYC registration authorities would suffice for all transactions across the financial sector,” he said.

He later told reporters Sebi was talking to the finance ministry for extending the tax pass-through status to alternative investment funds. On possible changes in the auction process after the sale of stake in Oil and Natural Gas Corporation, he said it was on the promoter to decide whether it would prefer one or more exchange platforms and the time limit for the auction process.

On retail participation, Sinha said Sebi was launching a massive drive towards investor education.