Financial sector regulators are working towards a common KYC norm for investors across financial instruments – mutual funds, stocks, bonds, bank deposits, insurance and pension plans. While SEBI has already decided to move to a common standard for all products regulated by it, there has been discussion with other regulators on the subject.
In due course, KYC done by one of the financial sector players may become the enabling tool for all products.
A transition to a common KYC will make the lives of investors and financial advisors easier as it would reduce the documentation substantially. The investors and advisors would be able to do away with the hassle of submitting various documents.
At present, it is only in case of mutual funds that one KYC clearance entitles investors to put money in multiple schemes.