Latest news with #CentralKYCRecordsRegistry
Time of India
04-05-2025
- Business
- Time of India
Sebi, FinMin push centralised KYC rollout; AI tools tackle 70,000 fraud cases: Pandey
Markets regulator Sebi is actively working with the Ministry of Finance and other financial regulators to set up a centralised Know Your Customer (KYC) system, Sebi Chairman Tuhin Kanta Pandey has said. The central KYC is an online database designed to streamline compliance by maintaining KYC records of customers in one place for use across financial institutions. When asked about the progress of the common KYC system, Pandey told news agency PTI, "Yes, I think we will move forward on that also. We're really trying to have a system which will be very, very effective." He added that the finance secretary is chairing the committee driving this initiative and that efforts are being made to speed up the process. While he did not provide a specific timeline, Pandey expressed optimism, saying, "It should be done quite early." To highlight current efficiencies, he pointed to the KYC Registration Agency (KRA) system. "This system is right now very effective where you do one KYC and then, everywhere it is really being done," he noted. He emphasised that the KRA system is not merely an uploading tool but a thoroughly authenticated setup. All six KRAs are currently interlinked, enabling seamless retrieval of data across platforms. Finance Minister Nirmala Sitharaman had announced during her Budget speech that a new and revamped central KYC registry would be launched in 2025. Subsequently, in April, Financial Services Secretary M Nagaraju chaired a meeting to review the Central KYC Records Registry and address key compliance issues to facilitate easier access to financial services. Separately, Pandey discussed the introduction of same-day (T+0) trade settlements. He clarified that the system is currently optional. "T+0 is actually an optional thing. It was intended to be optional," he said, explaining that this allows market participants to adapt gradually to the new system. On the technology front, Pandey highlighted Sebi's increasing use of artificial intelligence (AI) to strengthen regulatory processes. AI is already being used for market surveillance and faster processing of IPO documents, and its use is expanding into supervisory technology (sup-tech). "And increasingly, it will be used for many other uses," he said. Pandey detailed how AI-powered surveillance is helping Sebi detect unauthorised advisory services on digital platforms. With cooperation from social media companies, Sebi has taken down over 70,000 fraudulent investment handles and misleading posts. He also cautioned about the risks of AI, particularly in the context of algorithmic trading and the influence of automated systems on trading and settlements. "AI has both sides," he noted, stressing the importance of developing and using AI responsibly to mitigate potential threats. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
04-05-2025
- Business
- Business Standard
Sebi working to set up centralised KYC system: Tuhin Kanta Pandey
He added that the finance secretary is chairing the committee responsible for this initiative, and efforts are underway to expedite the process Press Trust of India New Delhi Markets regulator Sebi is actively working with the Ministry of Finance and other financial regulators on setting up a centralised KYC (Know Your Customer) system, chairman Tuhin Kanta Pandey has said. The Central KYC is an online database that maintains KYC records of customers in a centralised manner, aiming to streamline compliance across financial institutions. When asked about the common KYC system, Pandey told PTI, "Yes, I think we will move forward on that also. We're really trying to have a system which will be very, very effective." He added that the finance secretary is chairing the committee responsible for this initiative, and efforts are underway to expedite the process. While no definitive timeline was shared, Pandey expressed optimism, saying, "It should be done quite early." To illustrate the effectiveness of current systems, he cited the robust KRA (KYC Registration Agency) system. "This system is right now very effective where you do one KYC and then, everywhere it is really being done," he noted. He emphasised that it is not merely an uploading mechanism but a thoroughly authenticated system. All six KRAs are currently interlinked, enabling seamless data retrieval. Finance Minister Nirmala Sitharaman, in her Budget speech, announced that a new, revamped central Know Your Customer (KYC) registry will be rolled out in 2025. Following this, in April, Financial Services Secretary M Nagaraju chaired a meeting to discuss the revamp of the Central KYC Records Registry and address key issues related to KYC compliance to facilitate easier access to financial services. On another front, Pandey addressed the issue of same-day (T+0) trade settlements. He clarified that T+0 will remain optional for now, stating, "T+0 is actually an optional thing. It was intended to be optional." This flexibility allows market participants to gradually adapt to the new system. On technology, he highlighted Sebi's use of artificial intelligence (AI) in enhancing regulatory processes. AI is currently being leveraged for surveillance and faster processing of IPO documents, and its applications are expanding into supervisory technology (sup-tech) and beyond. "And increasingly, it will be used for many other uses," he said. Elaborating further on Sebi's AI-powered surveillance capabilities, Pandey explained that the tools continuously monitor online platforms to detect unauthorised advisory services. Through collaboration with social media platforms, Sebi has successfully taken down over 70,000 fraudulent investment handles and misleading posts. However, he also cautioned about the inherent risks of AI. He pointed to concerns around algorithmic trading and the extent to which machines and algorithms might impact the trading and settlement system. "AI has both sides," he said, adding there is a need for responsible AI development and implementation to mitigate such risks.
