Under the proposals, the requirement for physical presence in India would be eliminated for PROI clients from FATF-compliant countries, allowing them to complete their KYC through digital mode.
SEBI has also proposed allowing intermediaries to rely on KYC undertaken by entities regulated by other financial sector regulators. KYC records of PROI clients would also be made portable across intermediaries in the securities market.
The regulator has proposed mandating the collection of email IDs from PROI clients to facilitate communication with intermediaries. It has also suggested expanding the list of authorised officials who can certify documents to include officials of overseas banks that have relationships with Indian banks.
The consultation paper also proposes safeguards for Video In Person Verification (VIPV), including measures to prevent spoofed IP addresses, concurrent audit and compliance with cyber security requirements.
The proposals are aimed at reviewing the existing onboarding process for individual PROI clients and simplifying it in view of the various digital onboarding modes available to investors.
The consultation paper has been uploaded on the SEBI website for public comments.Individual PROI clients seeking registration as Foreign Portfolio Investors (FPIs) will continue to be subject to the provisions of the applicable SEBI Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors.
Also Read: Bank credit growth hits 2-year high in July as deposit growth touches decade high: RBI
