The Securities and Exchange Board of India (SEBI) has relaxed know-your-customer requirements for individual investors living overseas, allowing eligible non-resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals to complete onboarding digitally from abroad.
The revised framework applies to individuals residing in jurisdictions compliant with the Financial Action Task Force (FATF). The changes are scheduled to take effect on December 3, 2026, according to reports on the regulator’s decision.
What changes for overseas investors?
Under the earlier process, the requirement for a client to be physically present in India during digital KYC had made remote onboarding difficult for many overseas individuals. The revised framework permits eligible applicants to submit KYC information and supporting documents digitally to SEBI-registered intermediaries while outside India.
The changes also seek to make KYC records more portable. Intermediaries can retrieve existing records through KYC Registration Agencies and the Central KYC Records Registry, reducing repeated document collection when an investor deals with multiple regulated intermediaries.
Verification safeguards remain
The relaxation does not remove identity, address or due-diligence obligations. Intermediaries must still establish the customer’s identity and address and understand the purpose of the business relationship. The framework provides for accepted electronic documents and alternative verification methods in specified circumstances.
SEBI has also prescribed safeguards for video-based in-person verification, including the presence of an authorised official and concurrent audit of the process.
Who may benefit?
The move could reduce procedural hurdles for overseas Indians and foreign individuals seeking access to Indian securities markets. Eligibility depends on the investor’s jurisdiction and the documentation and checks required by the intermediary.
Sources
Read the SEBI news and circular listing, the Reuters report and the Indian Express explainer.
