SEBI proposes digital KYC, portable records for NRIs, OCIs and foreign nationals

The Securities and Exchange Board of India (SEBI) has proposed easing Know Your Customer (KYC) requirements for individual persons resident outside India, including Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals, to simplify their onboarding with securities-market intermediaries.

Under the proposals, individuals from FATF-compliant countries would no longer need to be physically present in India to complete their KYC and could instead complete the process digitally. SEBI has also proposed making KYC records portable across intermediaries in the securities market.

The regulator has released a consultation paper seeking public comments on the proposed changes. The deadline for submitting comments is September 4, 2026.

Physical presence requirement proposed to be removed

One of the key proposals is to eliminate the requirement for physical presence in India for PROI clients from FATF-compliant countries.

The proposed framework would allow such clients to complete KYC through digital modes, potentially simplifying the onboarding process for overseas investors seeking access to India's securities market.

SEBI has also proposed allowing intermediaries to rely on KYC undertaken by entities regulated by other financial-sector regulators.

One KYC for multiple intermediaries

The regulator has proposed allowing KYC records of PROI clients to be portable across intermediaries in the securities market.

The proposal is aimed at reducing the need for overseas clients to repeat KYC procedures when dealing with multiple intermediaries.

SEBI has also proposed mandating the collection of email IDs from PROI clients to facilitate communication with intermediaries.

Another proposal seeks to expand the list of officials authorised to certify documents. This would include officials of overseas banks that have relationships with Indian banks.

Safeguards proposed for video verification

Alongside easier digital onboarding, SEBI has proposed safeguards for video in-person Verification (VIPV).

These include measures for spoofed IP prevention, concurrent audit and cybersecurity compliance.

The safeguards are part of the proposed framework for allowing greater use of digital processes while onboarding overseas clients.

Consultation paper seeks public comments

SEBI said the proposals are intended to ease the onboarding process for individual PROI clients.

The regulator has released a consultation paper elaborating on the proposals and invited comments from the public. The consultation paper was released on August 14, with September 4 set as the last date for submissions.

The proposals, therefore, are not final KYC rules yet. Any changes to the existing framework will follow SEBI's consultation process and subsequent regulatory action.