SEBI may liberalise ‘KYC’ norms soon
06 Oct 2012
The government is apparently not yet done with its liberalisation drive, despite the opposition from virtually all non-Congress parties. According to a report, the Securities and Exchange Board of India (SEBI) is finalising a number of measures which it might make public in a few weeks.
These could include a possible safety-net mechanism for retail investors buying into initial public offerings (IPOs), according to the Hindustan Times.
The stock market regulator is also planning to reduce the gap between allotment of shares and the time when these start trading on stock exchanges from 12 days to one week, making the process simpler and faster.
Finance minister P Chidambaram is likely to address a SEBI board meeting in Mumbai today, triggering speculation about more action on the 'reforms' front, with several new initiatives to boost fund flow into the capital markets, the HT report says.
Moreover, if a government plan proceeds as intended, investors will be able to avoid the lengthy process of filling up know-your-customer (KYC) registration forms each time they buy a financial product or service.
Once the plan is implemented, investors will be able invest in mutual fund units, trade in equity shares, buy insurance policies and open bank accounts through a common KYC registration.
