New framework, effective December 3, allows eligible overseas investors to complete digital onboarding without travelling to India, while retaining stringent verification safeguards
The Securities and Exchange Board of India (SEBI) has relaxed Know Your Client (KYC) requirements for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals, allowing eligible individuals to complete digital onboarding from overseas without being physically present in India.
The revised framework, announced through a circular dated November 4, will come into effect on December 3, 2026. It applies to individual investors residing in countries compliant with the Financial Action Task Force (FATF) standards. Those living in FATF non-compliant jurisdictions will continue to follow the existing procedures.
The move is expected to simplify access to India’s securities markets for the Indian diaspora and other overseas investors by reducing procedural hurdles and the need for physical documentation.
Under the revised rules, SEBI-registered intermediaries, including stockbrokers, depository participants and mutual fund distributors, can accept digital KYC information and supporting documents from eligible overseas clients.
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Investors will be required to provide their Permanent Account Number (PAN), passport details and, where applicable, an OCI card. Overseas addresses will be accepted as proof of residence
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PAN verification will be carried out against the Income Tax database
The regulator has also introduced greater portability of KYC records. KYC Registration Agencies (KRAs) will mark individual details as “validated” after verification against official databases. These records can be shared across financial intermediaries, reducing the need for investors to repeat the entire process when opening accounts with different institutions.
SEBI has permitted intermediaries to rely on KYC records maintained by other SEBI-registered entities or financial institutions regulated by the Reserve Bank of India, Insurance Regulatory and Development Authority of India, Pension Fund Regulatory and Development Authority or International Financial Services Centres Authority.
However, the relaxation does not remove verification safeguards. Where physical verification is not feasible, Video In-Person Verification (VIPV) can be undertaken. The process must include an authorised official, live location verification, face-liveness checks, safeguards against spoofed IP addresses and concurrent audits.
Intermediaries will also be required to upload completed KYC details to the relevant KRA within three working days.
The revised framework is expected to make investing in Indian capital markets more accessible to overseas individuals while maintaining safeguards against fraud, impersonation and money laundering.
