SEBI eases KYC norms for NRIs, overseas citizens; allows digital onboarding from abroad

SEBI Eases Overseas KYC Onboarding

The Securities and Exchange Board of India has relaxed Know Your Customer requirements for Non-Resident Indians, Overseas Citizens of India and foreign nationals investing in Indian securities markets. Eligible overseas individuals can now complete onboarding digitally from abroad, without being physically present in India. The earlier rule requiring physical presence in India during digital KYC had effectively blocked remote completion. Under the revised framework, individuals residing in Financial Action Task Force compliant countries may submit KYC information and supporting documents digitally to SEBI-registered intermediaries. The change follows representations from market participants seeking simplification.

Why It Matters For Businesses

Intermediaries gain clearer ground to onboard overseas clients remotely, which should ease access for the Indian diaspora. KYC records become portable and shareable with another intermediary regardless of whether every attribute has been validated. KYC Registration Agencies will tag individual attributes as validated where verified against official or source databases. Intermediaries may also rely on KYC done by another SEBI-registered intermediary or an entity regulated by another financial sector regulator, based on records from a KRA or the Central KYC Records Registry. This reduces duplicated documentation and verification, notably for investors holding accounts with multiple brokers and depositories.

Verification And Safeguards

Intermediaries will first seek the investor's Permanent Account Number and Central KYC ID, if available, then retrieve existing records. Additional information is sought only if records are incomplete, outdated, inconsistent with regulatory requirements or need enhanced due diligence. Identity verification requires a passport copy and, where applicable, the OCI card. Foreign nationals lacking address details in official documents may use documents from a fore…