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SEBI to launch C-KYC 2.0 for unified know-your-customer system
04 May 2026

The Securities and Exchange Board of India (SEBI) is gearing up to launch C-KYC 2.0 by July this year.

The announcement was made by SEBI Chairman Tuhin Kanta Pandey during a recent event.

He emphasized the importance of a unified Know Your Customer (KYC) system for the financial sector, in line with the government's "One Nation, One KYC" vision.

One KYC across financial sector
Data security

Pandey stressed that the goal of a unified KYC system is to make onboarding seamless while ensuring data integrity.

He said, "What we really want is to have one KYC across the financial sector."

However, he also highlighted that authentication remains the biggest challenge in this process.

Without reliable verification, pooled data risks becoming "untrustworthy," he noted.

Finance minister backs SEBI's push for common KYC norms
Regulatory support

Finance Minister Nirmala Sitharaman has backed SEBI's role in driving common KYC norms and digitizing processes across the Indian securities market.

She said, "I would suggest SEBI should help drive the prescription of the common KYC norms and the simplification and digitization of KYC processes across the Indian securities market."

Sitharaman also urged other regulators to work toward this with a "sense of urgency."

Global investors view India as part of the world market
Market dynamics

Responding to concerns over recent outflows, Pandey said global investors allocate capital based on risk-return considerations across markets.

"They are looking at the world as a market, not India in isolation," he said.

He added that while SEBI has eased registration and improved market structure, flows will ultimately depend on global factors, sectoral opportunities, and post-tax returns.

Need to simplify disclosures for retail investors
Investor protection

Defending SEBI's disclosure-based regime as the backbone of investor protection, Pandey acknowledged the need for simplification.

He pointed to the introduction of "abridged prospectuses" aimed at making key information more accessible to retail investors.

"All core information should be encapsulated in a concise format," he said while allowing more detailed filings for institutional investors and foreign portfolio investors (FPIs), whose requirements differ.