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Business News – Commerce Minister Piyush Goyal bats for common KYC across financial markets

Goyal suggested having a common KYC procedure for banking and the capital markets; a single-window common KYC will simplify entry of new investors and individuals in the financial markets, he said.

Commerce and Industry, Consumer Affairs and Food and Public Distribution and Textiles Minister Piyush Goyal has suggested having a single-window common KYC (Know Your Customer) procedure for individuals entering various segments of the financial markets like equity trading or banking.

Speaking at an event organised by the National Stock Exchange (NSE) to celebrate the silver jubilee of Nifty 50 Index and 20 years of derivatives in Indian capital markets, the minister said that a common KYC for individuals looking to start trading or applying for a credit card or just opening a bank account would make it simpler and easier for more people to come to intermediaries, including stock exchanges and banks.

“Is it possible to think of a single window for doing customer KYC for stockbrokers, for mutual fund investors, for depositories, banking, financial intermediaries, credit card companies…so many organisations are doing KYC, can we not now look at creating a common KYC for all these various intermediaries in the financial world,” said Goyal.

The minister further added that a common KYC would be beneficial to both, market intermediaries and the investors, while ensuring proper compliance along with timely submission of the necessary documents.

In the context of certain financial intermediaries requiring additional information, the minister suggested that there could be a common KYC portal wherein intermediaries could ask for additional information or disclosures in the form of addendums.

“…there could be small add-ons to the common form so people are not required to go back again and again for different approvals,” said the minister.

On a different note, he highlighted the fact that mutual fund advertisements rush through the disclaimers at the end, which is not the right way from an investor perspective. He urged the industry to look into the matter to ensure that the disclaimers are also said properly.

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