Now, Sebi wants uniform KYC norms for all

The Securities and Exchange Board of India (Sebi) seems eager to spearhead a big change for the financial sector: it’s seeking implementation of uniform Know Your Customer norms.

“We would like other regulators to also look at our system,” said UK Sinha, Sebi chairman, a message that will be loud and clear to all other regulating bodies.

Sinha said that his dream was that once a person complied with KYC norms according to one regulatory agency, he or she would not be required to apply for complying with KYC norms for any other transaction across the entire financial sector.

In fact, the implementation of uniform KYC norms has already begun with the KYC registration agency being set up by the Central Depository Services Ltd (CDSL) .This agency will maintain the KYC records of all investors in a central database, which should reduce reduce back-office cost for intermediaries during transactions, CNBC TV-18 reported.

However, some foreign investors have expressed reservations about uniform KYC norms and tax issues. In that context, Sinha said that the matter would be settled after consultations with the government.

Overall, if uniform norms are enforced, individuals will no longer have to fill out separate KYC forms every time they open a bank account or buy financial products like a mutual fund or insurance policy.

Watch the CNBC TV-18 video below :