In a major benefit to investors, financial sector regulators on Saturday discussed the progress on a common demat account and Know Your Client (KYC) norms.
The proposals were announced in Budget 2014-15 and are expected to be implemented later this year.
“The Sub-Committee reviewed the major decisions made in the Union Budget and discussed the road for implementing them. These included one single demat account for all financial assets; introduction of uniform KYC norms and inter-usability of KYC records across the financial sector,” said an official release after a meeting of the sub-committee of the Financial Stability and Development Council (FSDC).
The meeting, which was chaired by Reserve Bank of India Governor Raghuram Rajan was also attended by finance secretary Arvind Mayaram; financial services secretary GS Sandhu, Sebi chairman UK Sinha, Officiating Chairman, PFRDA, RV Verma, and Forward Markets Commission chairman Ramesh Abhishek.
Earlier, the FSDC had also set up an inter regulatory technical committee to work on the roadmap for a common demat and KYC norms.
Meanwhile, the FSDC sub-committee also discussed measures for strengthening and deepening the markets for corporate bond, currency derivatives and interest rate futures; and participation of domestic foreign investors and foreign institutional investors in the commodity market. The panel in its meeting also reviewed the domestic macro economy and potential risks facing the financial system.
“A draft roadmap for creating standards and protocol for setting up account aggregation facility for financial assets was deliberated in the meeting,” the release said.