The Securities and Exchange Board of India (SEBI) is set to provide significant relief to Non-Resident Indian (NRI) investors by reducing the documentation burden associated with Know Your Customer (KYC) processes. SEBI Chairman Tuhin Kanta Pandey made this announcement on Saturday, outlining the regulator's commitment to streamlining investment procedures for overseas investors.

Proposed KYC Reforms

Pandey revealed that SEBI is actively working to reduce documentation requirements and simplify the re-KYC process. The proposed reforms aim to address long-standing concerns of NRI investors who have faced challenges with extensive paperwork and complex compliance procedures.

The key aspects of the planned reforms include:

Role of KYC Registration Agencies

Under the proposed framework, KYC Registration Agencies (KRAs) will play a crucial role in the simplified process. These agencies will be required to maintain only updated records, eliminating redundant documentation and reducing the administrative burden on both investors and regulatory bodies.

Public Consultation Process

SEBI plans to initiate a public consultation on these proposals in the near future. This consultation will allow stakeholders, including NRI investors, financial institutions, and market intermediaries, to provide feedback on the proposed changes before their implementation.

The move represents SEBI's continued efforts to enhance the ease of doing business for foreign investors and strengthen India's position as an attractive investment destination for the global Indian diaspora.

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey highlighted the remarkable surge in India's capital markets across multiple segments including equity, derivatives, mutual funds, real estate investment trusts, infrastructure investment trusts, and corporate bonds. Speaking at the Association of National Exchanges Members of India 15th International Capital Market Convention 2026 in Chennai, Pandey presented compelling data showcasing the market's robust growth trajectory.

Investor Base and Market Growth

The Indian capital markets have witnessed unprecedented expansion in investor participation and fundraising activities. The growth metrics demonstrate the market's increasing appeal and accessibility to retail and institutional investors alike.

Regulatory Framework Modernisation

Pandey emphasised SEBI's commitment to building a smarter regulatory architecture that balances compliance efficiency with robust investor protection. The regulator has introduced several key initiatives to streamline operations while maintaining market integrity.

SEBI recently notified the stockbrokers regulations 2026, which permits diversification into activities overseen by other financial sector regulators, subject to prescribed safeguards. This regulatory evolution reflects the changing landscape of financial services and the need for integrated oversight.

Technical Glitch Framework Revision

A significant development announced by Pandey was the revised framework addressing technical glitches in stockbrokers' trading systems, issued on Friday. The revamped framework introduces several compliance simplifications specifically designed to benefit smaller stockbrokers.

Key Framework Changes

The new eligibility criteria and reporting modifications include:

• Scope Limitation: Framework now applies only to stockbrokers with over 10,000 registered clients
• Compliance Reduction: Approximately 60% of stockbrokers will move out of this framework, reducing their overall compliance requirements
• Extended Reporting Time: Technical glitch reporting timeline extended from one hour to two hours
• Holiday Consideration: Trading holidays now considered when submitting reports
• Unified Platform: Streamlined reporting to single Common Reporting Platform instead of multiple exchanges

Market Infrastructure Development

The SEBI Chairman's remarks underscore the regulator's focus on removing duplication in compliance processes while safeguarding investor protection and market integrity. The substantial clientele and technology dominance criteria for the technical glitch framework demonstrates SEBI's risk-based approach to regulation.

The diversification permissions for stockbrokers into activities overseen by other financial sector regulators, subject to prescribed safeguards, indicates SEBI's recognition of evolving market dynamics and the need for flexible regulatory frameworks that can accommodate innovation while maintaining appropriate oversight.