Zerodha CEO Nithin Kamath praises SEBI's digital KYC rules for NRIs

Zerodha founder and CEO Nithin Kamath has welcomed SEBI's decision to ease digital KYC rules for Non-Resident Indians, Overseas Citizens of India, and foreign nationals. The updated framework will cut down account opening times from weeks to just two to three days.

The New Rules

In a circular dated November 4, 2026, the Securities and Exchange Board of India removed the old requirement for investors to be physically present in India during digital onboarding. Eligible NRIs and OCIs living in FATF-compliant countries can now complete the entire KYC process from abroad starting December 3, 2026. Previously, investors had to get documents attested by a notary or the Indian embassy, courier physical copies to India, and wait weeks.

Industry Impact

Kamath stated that account opening was one of the biggest hurdles for overseas investors wanting to put money into India. He noted that making the process simpler is one of the easiest ways to bring in more long-term capital since many NRIs already want to invest. While Zerodha has simplified several things for NRIs over the past year, onboarding remained a major challenge.

Context

Know Your Client or KYC rules are mandatory checks used by financial institutions to verify the identity of their customers and prevent financial crimes. Countries use FATF guidelines to ensure their financial systems are secure and compliant with global standards.