Market regulator Sebi plans to simplify know-your-customer (KYC) requirements for foreign portfolio investors (FPIs) and review disclosure norms through a risk-based approach as part of its efforts to improve market access and attract global capital, chairman Tuhin Kanta Pandey said on Friday.
"We will work with other regulators to ease the KYC process for NRIs. Our efforts will be to provide clarity that global capital seeks, especially in uncertain times," Pandey said at an event.
The regulator also plans to develop longer-tenure futures and options contracts in the equity derivatives segment, to deepen participation beyond short-dated products.
It is also undertaking a comprehensive review of securities lending and borrowing as well as short-selling frameworks to enhance liquidity and strengthen linkages between cash and derivatives markets.
"Clearer processes move capital faster. Sharper disclosures reduce uncertainty. Easier access improves confidence," the Sebi chairman said.
He also underscored the importance of independent directors in strengthening corporate governance. "Their role is not limited to asking difficult questions on governance," he said. "They must contribute in board discussions on how best to address emerging challenges, such as, AI, cybersecurity, ESG, R&D, and rapid technological change. At the same time, they must protect minority shareholder interests and support long-term value creation."
Sebi plans to collaborate with market participants to create a structured and scalable ecosystem for training and capacity building of independent directors. It is reviewing several key regulations, including the Listing Obligations and Disclosure Requirements (LODR) framework, to make it more responsive to evolving governance and disclosure needs, Pandey said.
The delisting framework, municipal debt regulations and portfolio management services norms are also under review.
The objective is to address practical issues faced by stakeholders and ensure that these frameworks continue to support market development.
"A well-developed capital market must provide fair entry and fair exit," Pandey said.
