The SEBI market regulator actively cooperates with the Ministry of Finance and other financial bodies in terms of building the centralized KYC system (meeting your client), said Tuhin Kanta Pandey chairman.
Central KYC is a web-based database that maintains KYC customer records in a centralized way, aimed toward improving compliance between financial institutions.
Asked about the common KYC system, said Pandey Pti: “Yes, I think we will also continue. We really try to have a system that will be very, very effective.”
He added that the financial secretary chaired by the committee answerable for this initiative, and the efforts are in the means of accelerating this process.
Although the final schedule was not made available, Pandey expressed optimism, saying: “It should be done quite early.” To illustrate the effectiveness of current systems, he quoted a solid KRA system (KYC registration agency). “This system is now very effective where you do one kyc, and then, wherever it is really done,” he noted.
He emphasized that this will not be only a transmission mechanism, but a totally authenticated system. All six kra is currently connected, enabling trouble -free data search.
Minister of Finance Nirmala Sitharaman in her budget speech announced that the latest, renovated registry of the Central Know Your Client (KYC) shall be implemented in 2025. After that, in April, the secretary of economic services M Nagaraju, in which the meeting was discussed to debate the registry of the central registration of KYC and solving key issues related to the compliance with KYC compliance with the compliance get easier access to financial services.
On one other front, Pandey handled the issue of economic settlements on the same day (T+0). He explained that T+0 will remain optional for now, stating: “T+0 is actually an optional thing. It was supposed to be optional.” This flexibility allows market participants to steadily adapt to the latest system.
In the scope of technology, he emphasized the use of artificial intelligence by SEBI (AI) in increasing regulatory processes. AI is currently used for supervision and faster processing of IPO documents, and its applications are expanding to supervisory technology (SUP-TECH) and more. “It will be used more and more often for many other applications,” he said.
By developing further possibilities of SEBI supervision, Pandey explained that the tools consistently monitor web platforms to detect unauthorized advisory services. Thanks to cooperation with social media platforms, SEBI has successfully removed over 70,000 false investment handles and misleading posts.
However, he also warned against the inseparable risk of artificial intelligence. He pointed to concerns about the first degree algorithmic trade in which machines and algorithms can affect the trade and settlement system.
“AI has both sides,” he said, adding that there’s a need for responsible development and implementation of AI to scale back such risk.
Posted on May 4, 2025
