SEBI eases KYC rules for NRIs, OCIs and foreign nationals; digital onboarding allowed from December 3

Markets regulator 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, allowing eligible overseas investors to complete onboarding digitally without travelling to India.

The revised framework, announced through a circular on November 4, 2026, will take effect from December 3, according to a PTI report.

The relaxation applies to individual Persons Resident Outside India (PROI) residing in Financial Action Task Force (FATF)-compliant countries.

The move aims to simplify onboarding, reduce documentation hurdles and improve access to India's securities markets for overseas investors.

What has changed for NRIs and OCIs?

Under the revised framework, SEBI-registered intermediaries can accept KYC information and supporting documents digitally from eligible overseas clients without requiring their physical presence in India.

Previously, physical presence requirements during digital onboarding created difficulties for investors living abroad.

SEBI said the relaxation would make account opening more convenient while maintaining verification and compliance safeguards.

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What documents will investors need?

Intermediaries must collect the client's Permanent Account Number (PAN), passport and OCI card, wherever applicable, along with proof of identity and address.

For individual PROI clients, the overseas residential address will be considered the current address.

The regulator has also permitted electronic submission of KYC forms and specimen signatures, subject to prescribed verification requirements.

These changes are expected to reduce paperwork and make the onboarding process more accessible.

Video verification permitted

Where physical in-person verification is not feasible, intermediaries can conduct Video In-Person Verification (VIPV).

However, SEBI has prescribed safeguards, including live geo-tagging, face-liveness checks, end-to-end encryption and the presence of an authorised official during verification.

These requirements are intended to ensure that digital onboarding remains secure and compliant with regulatory standards.

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Greater portability of KYC records

SEBI has also introduced greater flexibility in sharing verified KYC records across financial intermediaries.

KYC Registration Agencies (KRAs) can tag individual attributes as 'validated' after checking them against official databases.

Once validated, these records can be shared with other intermediaries, reducing repeated verification requirements.

Intermediaries may also rely on KYC conducted by another SEBI-registered entity or a financial-sector-regulated institution, using records available with KRAs or the Central KYC Records Registry (CKYCRR).

However, the receiving intermediary remains responsible for KYC compliance and enhanced due diligence.

What happens next?

Intermediaries must submit KYC information for individual PROI clients to the relevant KRA within three working days of completing the process.

The revised framework will also apply to re-KYC requests from eligible clients residing in FATF-compliant countries.

The changes are expected to simplify compliance and improve access to Indian investment markets for overseas investors.

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