SEBI Simplifies Digital KYC Rules for NRIs and Foreign Investors

The Securities and Exchange Board of India has relaxed Know Your Customer rules for Non-Resident Indians, Overseas Citizens of India, and foreign nationals. The updated framework lets eligible individuals complete their onboarding digitally from abroad starting December 3, 2026, removing the previous rule that required clients to be physically present in India.

New Verification Rules

Under the circular dated November 4, 2026, investors residing in countries that comply with the Financial Action Task Force can submit their documents to SEBI-registered intermediaries online. Intermediaries will collect Permanent Account Numbers, passports, and OCI cards where applicable. PAN details will be verified directly against the Income Tax Database without needing a physical card. Foreign nationals whose identity documents lack address details can provide government-issued papers from their home country or a letter from a foreign embassy or mission in India.

Record Portability

SEBI has made KYC records fully portable across different intermediaries, even if every individual attribute has not been validated yet. KYC Registration Agencies will tag attributes as validated after checking them against official databases. Intermediaries can also rely on past verification done by other SEBI-regulated entities or financial sector regulators, which cuts down on duplicate paperwork for investors who use multiple brokers.

Strict Safeguards

Where physical checks are not possible, intermediaries can use Video In-Person Verification. According to Livemint, this video process must include live GPS coordinates, date and time stamps, and specific random actions to stop pre-recorded interactions. An authorized official must attend the video session, and the entire process faces concurrent audit. Clients who submit digital signatures must also provide a wet signature during the video check.

Context

KYC checks are mandatory verification procedures used by financial institutions to confirm customer identities and prevent financial crimes. The Indian capital market regulator sets these uniform compliance standards to ensure foreign investments flow smoothly while keeping the financial system secure.