Proposed digital verification system aims to remove paperwork and encourage greater overseas participation in Indian markets
Non-Resident Indians (NRIs) and foreign investors may soon be able to complete the mandatory Know Your Customer (KYC) process from their home countries, in a move aimed at making investment in India faster and more convenient.
The proposal, currently being examined by market regulator the Securities and Exchange Board of India (SEBI), seeks to introduce a fully digital onboarding process for overseas investors. The initiative is expected to eliminate the need for physical paperwork, document attestation and travel to India, significantly reducing the time and cost involved in opening investment accounts.
At present, KYC requirements remain one of the biggest hurdles for many overseas investors, particularly first-time applicants. Industry participants have long argued that complex verification procedures discourage investments despite growing interest in India’s financial markets. Recent data has also highlighted that cumbersome KYC norms have slowed NRI participation in equity markets even as account openings have increased.
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The proposed framework is expected to build on SEBI’s earlier reforms
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In December 2025, the regulator permitted digital re-KYC for existing NRI clients using video verification and geolocation tagging. The new proposal would extend similar technology to first-time KYC registrations, allowing investors to complete identity verification remotely through secure digital platforms
The move is part of broader regulatory efforts to improve ease of doing business and attract greater overseas capital into India’s financial markets. Simplifying compliance for NRIs, Overseas Citizens of India (OCIs) and other foreign investors is expected to support wider participation in equities, mutual funds and other regulated investment products.
If implemented, the home-based KYC system could mark a significant step towards modernising India’s investment ecosystem, making it easier for the global Indian diaspora and international investors to access one of the world’s fastest-growing major economies while maintaining regulatory safeguards against financial crime.
