SEBI eases KYC norms for NRIs and foreign nationals
Overseas investors can now complete digital onboarding without being physically present in India, according to a new regulator circular.
The Securities and Exchange Board of India (SEBI) has relaxed Know Your Customer (KYC) requirements for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and foreign nationals. According to reports from Moneycontrol and The Economic Times, the regulator has removed the necessity for these clients to be physically present in India to complete digital onboarding.
The new rules allow market intermediaries to accept digital submissions of KYC information and supporting documents from persons resident outside India (PROIs). However, this relaxation only applies to individuals residing in countries that comply with the Financial Action Task Force (FATF) framework. Clients in non-compliant countries must continue to follow existing KYC processes.
Under the revised framework, KYC records will be portable across different intermediaries. Intermediaries may also rely on records from other SEBI-registered entities via KYC Registration Agencies (KRAs) or from other regulated bodies through the Central KYC Records Registry (CKYCRR), such as the Reserve Bank of India (RBI).
For verification, intermediaries must collect the client's PAN, passport, and OCI card where applicable. PAN details will be checked against the Income Tax database. If physical documents are unavailable, intermediaries can use DigiLocker, Aadhaar-based e-KYC, or documents attested by Indian embassies and consulates.
The regulator has also prescribed safeguards for Video In-Person Verification (VIPV). This process requires live video recording with GPS coordinates, time stamps, and facial liveness checks. If a client submits a digital specimen signature, they must provide a wet signature during the VIPV for live matching.
The revised norms are scheduled to come into effect on December 3, 2026.