Mumbai: Union Finance Minister Nirmala Sitharaman has called for a seamless, secure, and portable Know Your Customer (KYC) framework across India’s financial sector, urging the Securities and Exchange Board of India (SEBI) to take the lead in establishing common standards.
Speaking at SEBI’s 38th Foundation Day celebration in Mumbai, Sitharaman emphasised the need to simplify and digitise KYC processes to improve user experience for citizens accessing financial services.
Push for simplified and digital KYC
The Finance Minister highlighted that a unified KYC system would enable individuals to seamlessly access multiple financial services without repetitive documentation. She noted that such a system should be secure, portable, and efficient, reducing friction for users while maintaining regulatory safeguards.
She said SEBI, with its strong digital infrastructure, large investor base, and institutional credibility, is well positioned to spearhead this initiative. At the same time, she urged other financial regulators to collaborate and implement the framework with urgency.
Strong institutional performance highlighted
Reflecting on the evolution of India’s financial markets, Sitharaman said challenges over the years have helped build resilient and robust institutions. She pointed to SEBI’s legal performance as a key indicator of its strength.
According to her, the regulator has achieved a success rate of over 90 per cent in the Supreme Court of India, 73 per cent at the Securities Appellate Tribunal, and 92 per cent in civil courts. These figures, she said, reflect the effectiveness and credibility of SEBI’s regulatory actions.
Robust capital market activity
The minister also highlighted strong activity in India’s capital markets during FY25-26. She noted that as many as 366 initial public offerings (IPOs) collectively raised approximately ₹1.9 lakh crore during the period.
She described the surge in retail investor participation as one of the most significant democratising developments in India’s financial history, driven by regulatory reforms and increased digital access.
Call for global coordination
On the global front, Sitharaman urged SEBI to enhance engagement with international regulators and market participants. She recommended more frequent and structured consultations on emerging challenges such as cross-border fraud, the use of artificial intelligence in financial markets, sustainable finance disclosures, and settlement interoperability.
While emphasising the importance of global dialogue, she clarified that Indian regulations need not simply replicate international frameworks. Instead, they should evolve independently while remaining aligned with global trends to strengthen investor confidence and India’s influence in international financial rule-making.
Conclusion
The push for a unified KYC system marks a significant step towards improving accessibility and efficiency in India’s financial ecosystem. With SEBI at the forefront and collaboration among regulators, the initiative could simplify financial transactions for millions while reinforcing trust and transparency in the system.