He was speaking after launching the country's first KYC Registration Agency (KRA) by the Central Depository Services at the BSE here.
'I hope once this KRA system stabilises, others will also adopt this system,' the regulator said, adding, 'Definitely we want to see more players launching such a system as that will bring down the cost of intermediaries by cutting down on their back office management teams.'
On how many such players is he looking at, Sinha said, 'It is difficult to put a number. But I don't see many players in this field as there is no scope for many such platforms. But I want to inform you that we are all for competition.'
Noting that CDSL has implemented the KRA platform in record time, Sinha said this is one of the major milestones in achieving customer service from the part of the SEBI.
CDSL executive director P S Reddy said the KRA system launched by his agency avoids duplication of customer details, which happens on Wednesday in the absence of a single-point platform.
That apart, it also allows competition as it is interoperable, which means, if a rival agency is put up, market participants can share the data bringing in data uniformity.
Reddy further said the system will also enable intermediaries in meeting compliance requirements in a hassle free manner.
Sebi had first issued the draft norms for a KRA system in October last year. On 2 December, it issued the final guidelines for KYC registration agencies.
A KRA platform can be set up by the wholly-owned subsidiaries of stock exchanges and depositories, other market intermediaries and self-regulatory bodies.
This came after SEBI in last August simplified the account opening process for investors.
Sinha also said SEBI will soon be launching a mass media campaign to educate retail investors about the simplified KYC norms.
'We will soon launch a mass media campaign to educate retail investors. We will also definitely work towards educating retail investors, which would help in attracting more people into the capital markets,' Sinha said in response to question.
Explaining the rationale behind allowing the auction route to companies to sell additional stake in the secondary market, Sinha said, the primary objective is to protect the interests of retail investors.