Goyal Asks NSE To Create Single KYC System For All Trading And Financial Transactions

by Swarajya Staff - Jan 6, 2022 09:55 AM +05:30 IST
Goyal Asks NSE To Create Single KYC System For All Trading And Financial TransactionsCommerce and Industry Minister Piyush Goyal (Representative image)

Union Minister of Commerce and Industry Piyush Goyal on Wednesday (5 January) called for transparency and the highest level of integrity in the stock markets.

Addressing the National Stock Exchange (NSE) function to mark the Silver Jubilee Celebration of 25 Years of Nifty Index and 20 Years of Launching of Derivatives Markets in India, he said this will empower households to look at greater incomes through investment besides encouraging foreign investors.

“I think perception matters in the financial world, and therefore it is imperative we must put in place a strong system to maintain the highest level of integrity and transparency, which will encourage every Indian to invest in the stock market & empower households to look at greater incomes through investment besides encourage foreign investors,” he said.

Goyal said the NSE has been able to eliminate a lot of bad practices and brought in more transparency in the working of the exchange.

“On a lighter note, many people are missing the charm and the excitement of trading in the ring as it used to happen earlier, but I think given the current market dynamics & the size of the markets, I’m sure the ring could not handle this level of trade volumes” he said, according to a Commerce Ministry release.

Goyal said India has earned respect globally, with its robust technical solutions for handling large trade volumes.

“It is equally pertinent that all financial products pass through the prism of ‘Trust, Transparency & Accountability’ so that they can turn into a rainbow of colours for the investors,” he said.

Goyal said Stock Exchanges play a pivotal role in providing capital both to industry and service sector and you channelize household savings and institutional flows for capital formation.

Goyal furhter said that the capital markets can become a source of finance for productive purposes like Infrastructure and Agriculture, which can benefit a very large majority of our population.

"Also, commodity derivative markets can be used to eliminate risks of farmers,” he said.

The Commerce Minister said India is on the path of unprecedented economic growth. The rising economic indicators have showcased India and its true potential and capacity.

“We have had the highest ever exports in the history of India. During December 2021, goods exports stood at $37 billion, up by about 37 per cent over last year. Exports have exceeded $30 billion for nine months in a row consecutively setting a record every month since April 2021,” he said,

He added, “Moody’s recently upgraded India’s rating, we recorded the highest ever FDI, we see a robust GST collection, Vibrant Startup ecosystem, Record Manufacturing and Services PMI - just to name a few indicators!”

Goyal said the Government under the leadership of PM Modi has worked in a mission mode to reduce compliance burden. He called upon the NSE to create a single KYC system for all trading and financial transactions like the NSWS.

“Recently we have launched the National Single Window System, one stop portal, has been launched on a pilot basis created which is a one-stop portal for approvals and clearances needed by businesses,” said Goyal.

“Is it possible to implement a Single window portal for doing robust common KYC system for Stock Brokers, Mutual Fund and depositories etc.?” he said.

Lauding NSE for being recognised as the largest derivatives exchange globally for 2019 and 2020, Goyal hoped it will contribute strongly to India’s growth story.

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