Sebi eases digital KYC rules for NRIs, foreign nationals from December 3

Sebi will allow NRIs, OCIs and foreign nationals in FATF-compliant countries to complete KYC digitally from December 3, easing onboarding and investment in Indian markets

The Securities and Exchange Board of India (Sebi) on Wednesday relaxed know-your-customer (KYC) requirements for persons resident outside India (PROIs), allowing those in Financial Action Task Force (FATF)-compliant countries to complete digital onboarding without being physically present in India.

 

The revised framework, effective December 3, will cover non-resident Indians (NRIs), overseas citizens of India (OCIs), and foreign nationals. Clients residing in FATF non-compliant countries will continue to follow existing KYC requirements.

 

The move aims to ease onboarding and thereby investments by such investors in the Indian markets. 

 

Under the revised norms, intermediaries can accept digital submission of KYC information and supporting documents from eligible clients. The regulator has also made KYC records portable, allowing them to be shared across intermediaries irrespective of whether all individual attributes have been validated.

 

 

Intermediaries can rely on KYC undertaken by another Sebi-registered intermediary or an entity regulated by another financial sector regulator, based on records obtained from KYC Registration Agencies (KRAs) or the Central KYC Records Registry.

 

The framework requires intermediaries to collect passport copies and, where applicable, OCI cards. Overseas addresses will be accepted as proof of address. Clients can submit KYC forms digitally or physically, while specimen signatures can be submitted electronically, subject to verification during video-based in-person verification.

 

Sebi has mandated the presence of an authorised official during video verification and subjected the process to concurrent audit. Intermediaries will remain ultimately responsible for client KYC, including enhanced due diligence based on risk profiles.

 

Intermediaries must provide completed KYC information to KRAs within three working days. The revised provisions will also apply to re-KYC of clients in FATF-compliant countries.