SEBI relaxes KYC rules for overseas investors to allow digital onboarding
Non-resident Indians and foreign nationals from FATF-compliant countries can now complete onboarding without being physically present in India.
The Securities and Exchange Board of India (SEBI) has eased Know Your Client (KYC) requirements for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and foreign nationals, according to reports by Mint and Times Now. The new rules allow individual Persons Resident Outside India (PROIs) located in countries compliant with the Financial Action Task Force (FATF) to complete digital onboarding while residing abroad.
The revised framework, which comes into effect on December 3, 2026, removes the previous necessity for clients to be physically present in India to complete the digital KYC process. This change is intended to simplify the investment process and improve the ease of doing business for those seeking access to Indian securities markets.
Under the new guidelines, intermediaries can conduct Video In-Person Verification (VIPV) when physical verification is not possible. This process must include live GPS coordinates, time stamps, and measures to prevent the use of pre-recorded videos, VPNs, or proxy servers. An official from the intermediary must be present during the video session, which will undergo concurrent audits.
SEBI has also introduced KYC portability, allowing records to be shared across different intermediaries. While intermediaries can rely on records from other SEBI-registered entities or other regulated financial regulators, the onboarding intermediary remains responsible for compliance and due diligence.
For foreign nationals, identity and address proof can be provided through government documents or letters from foreign embassies. PAN details will be verified against the Income Tax Database without the need for physical copies. However, investors from FATF non-compliant countries must continue to follow existing KYC requirements.