The Securities and Exchange Board of India (SEBI) has eased know-your-customer (KYC) requirements for overseas investors, allowing eligible individuals to complete the onboarding process digitally without having to be physically present in India.
The revised framework, which will come into effect on December 3, applies to persons resident outside India (PROIs), including non-resident Indians (NRIs), overseas citizens of India (OCIs) and foreign nationals residing in countries compliant with the Financial Action Task Force (FATF) standards.
The move is aimed at simplifying the onboarding process and making it easier for overseas investors to access Indian financial markets. Investors based in FATF non-compliant jurisdictions will continue to follow the existing KYC requirements.
Under the new framework, SEBI-regulated intermediaries can accept KYC details and supporting documents through digital channels. The regulator has also introduced greater portability of KYC records, allowing investors to use their existing verified information across intermediaries.
Intermediaries can rely on KYC checks already completed by another SEBI-registered intermediary or an entity regulated by a financial sector regulator. They can access these records through KYC Registration Agencies (KRAs) or the Central KYC Records Registry.
What documents will overseas investors need?
Eligible investors will be required to submit copies of their passports and, where applicable, overseas citizen of India (OCI) cards. Overseas addresses can be furnished as proof of address.
Investors will have the option of submitting KYC forms either digitally or physically. Specimen signatures can also be provided electronically, subject to verification during video-based in-person verification (IPV).
SEBI has laid down additional safeguards for video verification. An authorised official must be present during the process, which will also be subject to concurrent audit. Intermediaries will continue to bear ultimate responsibility for completing client KYC and conducting enhanced due diligence based on individual risk profiles.
The regulator has also set a timeline for updating records. Intermediaries must submit completed KYC information to the relevant KRAs within three working days.
The revised provisions will apply not only to new overseas investors but also to the re-KYC of existing clients residing in FATF-compliant countries.