SEBI has relaxed digital Know Your Customer (KYC) requirements for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals living in countries compliant with Financial Action Task Force (FATF) standards. From December 3, 2026, eligible investors will be able to complete digital onboarding for India’s securities market without travelling to India for physical presence-based verification.
The revised framework also makes KYC records more portable across financial intermediaries, allowing investors to avoid repeating the entire verification process when opening accounts with different SEBI-regulated entities. The changes are intended to make it easier for overseas investors and the Indian diaspora to participate in domestic capital markets.
Who Can Benefit From the New SEBI KYC Rules?
The revised framework covers individual Persons Resident Outside India (PROIs), a category that includes:
- Non-Resident Indians (NRIs): Indian citizens who qualify as non-residents under applicable regulations.
- Overseas Citizens of India (OCIs): Individuals holding OCI status who live outside India.
- Foreign nationals: Individuals who are not Indian citizens but reside outside India.
However, the relaxation is not available to everyone living overseas.
The new digital onboarding facility applies to eligible individuals residing in FATF-compliant countries. Investors located in FATF non-compliant countries will continue to follow the existing KYC requirements.
The revised framework will apply to onboarding as well as re-KYC for eligible overseas clients.
Digital KYC Without Travelling to India
One of the biggest changes is the removal of the requirement that eligible overseas investors must be physically present in India during digital onboarding.
Previously, the requirement created difficulties for NRIs and other foreign-based investors who wanted to open accounts with Indian securities market intermediaries.
They often had to depend on physical documentation, international couriers or travel to India to complete parts of the verification process.
Under the revised framework, SEBI-registered intermediaries can accept digital submissions of KYC information and supporting documents from eligible clients located in FATF-compliant countries.
This could simplify account opening for overseas investors interested in Indian equities, mutual funds and other securities market products.
What Documents Will NRIs and Foreign Nationals Need?
Although the onboarding process is becoming more flexible, investors will still need to provide identity and address documents.
Under the revised framework, intermediaries must collect the following documents and information:
| Requirement | Details |
|---|---|
| PAN | Permanent Account Number |
| Passport | Passport copy required |
| OCI card | Required wherever applicable |
| Address proof | Overseas address accepted as current address |
| KYC form | Can be submitted digitally or physically |
| Specimen signature | Can be submitted electronically, subject to verification |
| Email address | Required for communication with intermediaries |
The acceptance of overseas addresses is particularly important because eligible investors will no longer need to establish physical presence in India simply to complete digital onboarding.
Video Verification Gets Additional Safeguards
SEBI has also clarified how intermediaries can conduct Video In-Person Verification (VIPV) when traditional physical in-person verification is not feasible.
The video-based process will allow intermediaries to verify an overseas investor’s identity remotely.
However, the regulator has introduced safeguards to maintain the integrity of the process.
These include:
- Presence of an authorised official of the intermediary during video verification.
- Live verification of the investor’s identity.
- Appropriate security and verification controls.
- Concurrent audits of the video verification process.
- Compliance with applicable cybersecurity requirements.
These safeguards are intended to reduce the risk of identity fraud, impersonation and misuse of digital onboarding facilities.
The revised framework therefore combines easier access with continued responsibility for identity verification.
KYC Records Will Become Portable Across Financial Intermediaries
Another important change is the increased portability of KYC records.
Currently, investors dealing with multiple financial intermediaries may face repeated documentation and verification requirements.
For example, an NRI opening accounts with different securities market intermediaries could be asked to provide KYC information multiple times.
Under the revised framework, KYC Registration Agencies (KRAs) will maintain records with individual attributes tagged as validated wherever they have been verified against official or source databases.
These records can be shared across intermediaries even if every individual attribute has not been validated.
SEBI has also permitted intermediaries to rely on KYC completed by:
- Another SEBI-registered intermediary.
- An entity regulated by another financial sector regulator.
This reliance will be based on information available through KYC Registration Agencies or the Central KYC Records Registry.
The change could reduce repetitive paperwork and make it easier for overseas investors to access multiple financial products.
Intermediaries Will Still Be Responsible for KYC Compliance
The relaxation does not remove the responsibility of financial intermediaries to verify their clients.
SEBI has made it clear that intermediaries will remain ultimately responsible for ensuring KYC compliance, even when they rely on verification completed by another regulated entity.
They will also need to conduct enhanced due diligence depending on the client’s risk profile.
Additionally, completed KYC information must be provided to the relevant KYC Registration Agency within three working days.
This requirement is intended to ensure that verified information is available within the broader securities market KYC infrastructure.
The framework seeks to make verification more reusable without weakening the checks required to prevent financial misconduct.
Why SEBI Wants to Make Overseas Investment Easier
India has a large overseas Indian community, including NRIs and OCIs living across North America, Europe, the Middle East, Asia and other regions.
Many of these individuals maintain financial connections with India and may want to invest in domestic equity markets, mutual funds and other securities.
However, complicated onboarding requirements can discourage participation.
SEBI has previously described overseas individual investors as an important and growing source of potential investment into Indian markets.
Simplifying digital KYC could help channel more overseas savings into India’s securities market while reducing administrative barriers for intermediaries.
The move also follows broader policy efforts to make it easier for individual foreign investors to access Indian securities.
The Bigger Picture
SEBI’s revised KYC framework is part of a broader effort to make India’s financial markets more accessible through digital infrastructure.
By removing the physical-presence requirement for eligible overseas investors, the regulator is addressing a long-standing onboarding difficulty faced by NRIs, OCIs and foreign nationals.
The portability of KYC records could also reduce duplication across financial institutions, making the investor onboarding process more efficient.
However, the effectiveness of the changes will depend on how consistently intermediaries implement the new procedures and how securely they manage overseas customer information.
Looking Ahead
The revised framework will become effective on December 3, 2026. Securities market intermediaries will need to update their onboarding systems, digital verification procedures and KYC record-sharing arrangements to accommodate eligible overseas clients. The implementation will also be important for ensuring that the new rules are applied consistently across different intermediaries.
Over the longer term, simpler digital onboarding could encourage greater participation by the Indian diaspora and other eligible overseas investors in domestic financial markets. If the system reduces paperwork while maintaining strong identity verification and risk controls, it could improve access to Indian investment opportunities without requiring investors to travel to India for routine KYC procedures.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
