"We cannot have multiple KYC norms for intermediaries and participants who are under one regulator, and worse, to have different set of norms for different regulator... That puts off the investor," Chidambaram said.

"And if investor stays away what is the justification of so many regulators and so many participants? The aim must be to attract investors... If you ask too many questions before an investor can open an account or participate, you frighten him away," he noted. He also expressed surprise that if one has a bank account, then why can't one open demat account straight away. "But if you do a pre-investigation before opening the account, I have no doubt in my mind that 5 out of 10 potential investors will be scared away, then they will say why should I waste my time," Chidambaram said. "Life must be made simple, and we must be able to sell (to) the investors that by participating in the capital market, investing in financial instruments, investing in capital markets is good for the savers in the long run, good for the system and good for the country," he added. The Finance Minister said the government wants the retail investors to come and invest in stock market. "We wish to support the stock market and encourage retail investors to come to the stock markets," he said. The RGESS, which was announced in the Budget for 2012-13, seeks to provide tax benefits to first-time investors in stock markets. Under the scheme, an individual with an income of less than Rs 10 lakh would get tax incentives for investing up to Rs 50,000 in the stock market. As per the notification issued by the Securities and Exchange Board of India (Sebi) on the RGESS, there would be a lock-in period of one year on investments made under the scheme.