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The planned changes are part of SEBI’s broader push to improve the ease of doing business and attract long-term overseas investment
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By making compliance simpler and more investor-friendly, the regulator hopes to strengthen India’s appeal as an investment destination for the global Indian community
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For NRIs looking to invest back home, the reforms could mark a welcome shift towards a more practical and hassle-free system
India’s capital market regulator, the Securities and Exchange Board of India (SEBI), is planning to significantly reduce the paperwork burden faced by Non-Resident Indian (NRI) investors. The move is expected to make investing in Indian markets simpler and faster for overseas Indians, many of whom have long complained about complex and repetitive Know Your Customer (KYC) requirements.
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SEBI Chairman Tuhin Kanta Pandey recently said the regulator is working on reforms aimed at cutting down excessive documentation and simplifying the re-KYC process
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At present, NRIs often need to submit multiple documents repeatedly to different financial institutions, even when their details have not changed
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This has led to delays, frustration, and in some cases, investors stepping away from the market altogether.
Under the proposed changes, the number of documents required for KYC is expected to be sharply reduced. For existing investors, the re-KYC process will be made smoother, avoiding unnecessary duplication. A key feature of the reform is the role of KYC Registration Agencies (KRAs). These agencies will be required to keep only updated and relevant records, rather than storing repeated or outdated information. This is expected to ease the compliance load on both investors and intermediaries.
SEBI has also announced that it will soon begin a public consultation on the proposed reforms. This will give NRI investors, banks, brokers, and other stakeholders a chance to share their views and suggest improvements before the rules are finalised.
