SEBI has relaxed KYC requirements for NRIs, OCI cardholders and foreign nationals, allowing eligible investors to complete digital onboarding from overseas without visiting India. The revised framework, effective 3 December 2026, also simplifies document verification and enables portability of KYC records across market intermediaries.
The Securities and Exchange Board of India (SEBI) has revised the Know Your Client (KYC) framework for individual Persons Resident Outside India (PROIs), including Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals, through a circular dated 4 November 2026.
Under the revised framework, individuals residing in Financial Action Task Force (FATF)-compliant countries can complete digital KYC and submit supporting documents without being physically present in India. This removes a major procedural difficulty for overseas investors seeking access to Indian securities markets.
SEBI has also introduced greater portability of KYC records across registered intermediaries. Existing information maintained by KYC Registration Agencies (KRAs) and the Central KYC Records Registry (CKYCRR) may be used to reduce repetitive documentation, subject to verification and due diligence requirements.
Intermediaries may verify PAN details through the Income Tax database, accept overseas addresses and use Video In-Person Verification (VIPV) where physical verification is impractical. Safeguards relating to identity verification, facial liveness and location checks will continue to apply.
The revised provisions will take effect on 3 December 2026. Existing KYC procedures will continue for individuals residing in FATF non-compliant countries. The relaxation is expected to simplify investment access for overseas individuals while maintaining safeguards against financial fraud and money laundering.
Source: CA Sansaar