SEBI has relaxed KYC requirements for eligible overseas investors, allowing NRIs, OCIs and foreign nationals from FATF-compliant jurisdictions to complete digital onboarding without physically visiting India. The revised framework, effective December 3, will simplify access to Indian capital markets and make KYC records portable across financial intermediaries.
SEBI Relaxes Digital KYC Norms for Overseas Investors
The Securities and Exchange Board of India (SEBI) has relaxed Know Your Customer (KYC) requirements for Persons Resident Outside India (PROIs), allowing eligible overseas investors to complete digital onboarding without being physically present in India. The revised framework will benefit Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals residing in jurisdictions compliant with Financial Action Task Force (FATF) standards.
The changes, which will come into effect on December 3, aim to simplify investment procedures and improve overseas participation in India’s financial markets. Investors residing in FATF non-compliant jurisdictions will continue to follow the existing KYC requirements.
KYC Records to Become Portable Across Intermediaries
Under the revised norms, market intermediaries will be permitted to collect KYC information and supporting documents through digital channels. In another significant change, SEBI has introduced portability of KYC records across financial intermediaries. This will enable investors to use their existing KYC records maintained with one intermediary when dealing with another, even where all individual attributes have not been validated.
Intermediaries can also rely on KYC verification conducted by another SEBI-registered intermediary or an entity regulated by another financial sector regulator, using records available with KYC Registration Agencies (KRAs) or the Central KYC Records Registry.
Digital Documentation and Video Verification
Overseas investors will be required to submit passport copies and, wherever applicable, OCI cards. SEBI has also permitted overseas residential addresses to be accepted as proof of address. Investors can submit KYC forms either digitally or physically, while specimen signatures may also be provided electronically. These signatures will be subject to verification during video-based In-Person Verification (IPV).
The changes are expected to reduce procedural difficulties for overseas investors seeking access to Indian securities markets.
SEBI Prescribes Additional Compliance Safeguards
To strengthen compliance and investor protection, SEBI has prescribed additional safeguards for digital verification. An authorised official must be present during video-based verification, and the process will be subject to concurrent audits.
Market intermediaries will retain ultimate responsibility for client due diligence and must undertake enhanced verification based on individual investor risk profiles. They will also be required to upload completed KYC records to KRAs within three working days. The revised provisions will extend to re-KYC procedures for existing clients residing in FATF-compliant jurisdictions.
SEBI’s revised digital KYC framework is expected to make India’s capital markets more accessible to overseas investors by reducing physical documentation and onboarding requirements. The introduction of portable KYC records, alongside enhanced verification safeguards, aims to improve convenience while maintaining regulatory compliance.
