No need to fly home for KYC: Sebi proposes easing geo-tag rules for NRIs

The regulator's draft circular suggests removing the requirement for non-resident investors to be physically present in India during KYC verification, seeking public feedback by November 13.

In a move aimed at easing compliance for overseas investors, the Securities and Exchange Board of India (Sebi) on Thursday proposed to relax the geo-tagging requirement for non-resident Indian (NRI) clients during their KYC or re-KYC process conducted through digital or video identification modes.

 

The proposal, outlined in a draft circular released by the regulator, seeks public feedback by November 13, 2025, and marks another step in Sebi’s ongoing push to simplify digital onboarding while maintaining security and verification standards.

 

At present, intermediaries such as brokers, mutual funds, and portfolio managers must ensure that NRI clients undergoing KYC or re-KYC are physically located in India during verification. This requirement is implemented through geo-tagging features built into digital onboarding or Video Client Identification Process (V-CIP) applications.

 

 

Under the new draft rules, Sebi has proposed to remove the requirement for existing NRI clients to be physically in India during re-KYC or modification of KYC details.

 

Instead, intermediaries will now need to verify the GPS location captured during the process against the latitude and longitude of the client’s proof-of-address, ensuring authenticity without mandating physical presence.

 

The change follows multiple representations from stakeholders — including intermediaries, fintech platforms, and NRI investor groups — who argued that the physical location rule had created unnecessary hurdles for investors living abroad.

 

This is particularly relevant as NRIs and overseas Indians continue to increase their investments in Indian equities and mutual funds, aided by simplified online onboarding channels.

 

While relaxing the location condition, Sebi has emphasized that security and authenticity checks must remain robust. 

Applications used for V-CIP will still be required to:

 

Incorporate random action prompts to ensure the interaction is live and not pre-recorded.

 

Include timestamping for all video sessions.

 

Deploy anti-spoofing mechanisms to detect and block manipulated IP addresses or fake sessions.

 

These measures aim to strike a balance between ease of doing business and investor protection.

 

Next Steps

 

The markets regulator has invited public comments on the draft circular until November 13, after which final guidelines are expected to be issued.

 

Once implemented, the revised norms will be applicable to all registered intermediaries facilitating digital KYC through V-CIP — including stockbrokers, mutual fund houses, and portfolio management service (PMS) providers.  Key things to note:  

• Under the proposed modification, Sebi has suggested that the requirement of the client's physical location being in India be relaxed for existing NRI clients during re-KYC or KYC modification.
• However, intermediaries will still need to ensure that the GPS location captured during the process matches the latitude and longitude of the client's proof of address.
• Sebi has also proposed that applications used for the video identification process continue to include safeguards such as random action prompts to ensure that interactions are not pre-recorded, along with time stamping and protection against spoofed IP addresses.