Zerodha chief Nithin Kamath welcomes proposed digital onboarding but says paperwork remains a key hurdle for overseas investors
PRAVASISAMWAD.COM
Zerodha founder and chief executive Nithin Kamath has welcomed a Securities and Exchange Board of India (SEBI) proposal aimed at making it easier for Non-Resident Indians (NRIs) to invest in Indian markets without being physically present in the country.
Kamath said the proposed changes could remove one of the biggest obstacles faced by overseas Indians — the lengthy onboarding process. Under the current system, NRIs living abroad can face extensive documentation requirements and delays in sending physical papers through international courier services.
SEBI’s consultation proposal seeks to enable NRIs to complete key onboarding requirements digitally, including electronic signatures from their country of residence. If implemented, the changes could significantly reduce the time needed to open investment accounts.
Kamath said procedures that can currently take weeks, or sometimes months, could potentially be completed within a matter of days. He described the proposal as an important step towards removing friction from the NRI investment process.
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The Zerodha chief also pointed to the growing importance of overseas Indians as a source of investment into India
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He said Zerodha currently has more than 50,000 NRI investors, with around 80 per cent considered active
SEBI had earlier simplified the investment process by allowing NRIs to invest through NRO non-PIS accounts without the earlier Portfolio Investment Scheme framework. Such accounts provide access to several market facilities, subject to applicable rules.
Kamath said reducing administrative barriers could encourage more NRIs to invest in Indian equities and bring greater overseas capital into the country’s financial markets.
The proposal remains subject to SEBI’s consultation and final decision. Its implementation could mark a further shift towards digital and more accessible investment services for India’s global investor community.
