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SEBI to simplify KYC norms for foreign investors
NewsBytes | June 13, 2026 6:39 PM CST



SEBI to simplify KYC norms for foreign investors
13 Jun 2026


The Securities and Exchange Board of India (SEBI) is planning to make Know Your Customer (KYC) norms simpler for foreign portfolio investors (FPIs).

The move, which was announced by SEBI Chairman Tuhin Kanta Pandey on Friday, is part of a larger strategy to improve market access and attract more global capital.

The regulator also intends to review disclosure norms with a risk-based approach.


Goal is to provide clarity that global capital seeks: Pandey
Regulatory collaboration


Pandey said SEBI will work with other regulators to make the KYC process easier for Non-Resident Indians (NRIs).

He emphasized that the goal is to provide clarity that global capital seeks, especially during uncertain times.

This move is aimed at attracting more foreign investment into Indian markets by simplifying compliance requirements and making them more transparent.


SEBI to introduce longer-tenure F&O contracts
Market expansion


Along with simplifying KYC norms, SEBI also plans to introduce longer-tenure futures and options contracts in the equity derivatives segment.

This is aimed at deepening market participation beyond short-dated products.

The regulator is also reviewing securities lending and borrowing as well as short-selling frameworks to improve liquidity and strengthen linkages between cash and derivatives markets.


Independent directors must strengthen corporate governance: Pandey
Governance enhancement


Pandey emphasized the role of independent directors in strengthening corporate governance.

He said their contribution should go beyond asking tough questions on governance to include participation in board discussions on emerging challenges such as AI, cybersecurity, ESG, R&D, and rapid technological change.

He stressed that they must also protect minority shareholder interests and support long-term value creation.


Other key initiatives announced by SEBI
Capacity building


SEBI plans to work with market participants to create a structured and scalable ecosystem for training independent directors.

The regulator is also reviewing key regulations such as the Listing Obligations and Disclosure Requirements (LODR) framework, to make it more responsive to evolving governance and disclosure needs.

Other frameworks under review include the delisting framework, municipal debt regulations, and portfolio management services norms.


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