Capital market regulator Securities and Exchange Board of India (SEBI) is in talks with other financial sector regulators for a single KYC Registration Agency (KRA). Once the system comes in place a customer will not need to fill multiple KYC (Know Your Customer) forms each time she goes to buy a mutual fund, insurance policy or open a bank account.
“We are informally talking to other regulators to adopt our model of having a uniform KYC system, which is beneficial to both customers and market intermediaries alike,” said UK Sinha, chairman, SEBI, after launching India’s first KRA by the Central Depository Services.
Sebi had first issued draft norms for a KRA system in last October and on December 2, it issued the final guidelines for KYC registration agencies.
Explaining the rationale behind allowing the auction route to companies to sell additional stake in the secondary market, Sinha said, the objective is to help companies to comply with the listing norms and to protect the interests of retail investors.
SEBI, on Tuesday, also allowed company promoters to auction their stakes to investors instead of selling shares in public offerings. He said SEBI is having a relook at the entire process of raising funds via initial public offerings.