SEBI KYC Rules for NRIs are set to make it easier for Indians living abroad and eligible foreign nationals to invest in Indian financial markets.
The Securities and Exchange Board of India (SEBI) has relaxed the Know Your Customer (KYC) requirements, allowing eligible overseas investors to complete digital onboarding without being physically present in India.
The revised framework was announced through a circular dated November 4, 2026, and will come into effect from December 3, 2026.
The relaxation covers Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals residing in countries compliant with the Financial Action Task Force (FATF).
The move is expected to simplify the account-opening process for overseas investors who want to access India’s securities markets without travelling to the country solely to complete KYC formalities.
SEBI KYC Rules for NRIs: What Has Changed?
Under the earlier requirements, individual overseas investors generally had to be physically present in India to complete digital KYC procedures. This made remote onboarding difficult for people living outside the country.
SEBI has now relaxed this requirement for eligible Persons Resident Outside India (PROIs) residing in FATF-compliant countries.
Registered market intermediaries can accept KYC information and supporting documents digitally from these clients.
The change means eligible overseas investors can complete the onboarding process while staying in their country of residence, subject to the prescribed identity verification and compliance requirements.
The revised framework also covers re-KYC procedures for eligible overseas clients, making it easier for existing investors to update their KYC details without unnecessary travel.
KYC Records Can Be Used Across Financial Intermediaries
Another important change concerns the portability of KYC records.
SEBI has introduced provisions allowing intermediaries to rely on existing KYC information maintained by KYC Registration Agencies (KRAs) and the Central KYC Records Registry (CKYCRR).
This can reduce the need for investors to submit the same documents repeatedly when dealing with different regulated financial institutions.
KYC Registration Agencies will also identify individual information as validated when it has been verified against official or source databases.
Intermediaries can rely on eligible KYC records completed by other SEBI-registered intermediaries or entities regulated by other financial sector regulators, subject to the revised framework.
However, the responsibility for ensuring KYC compliance will remain with the intermediary onboarding the investor.
It must also carry out enhanced due diligence wherever required based on the client’s risk profile.
Video KYC and Document Verification Rules
SEBI has also provided flexibility in the verification process. Where physical In-Person Verification (IPV) is not feasible, intermediaries can use Video In-Person Verification (VIPV), subject to prescribed safeguards.
The video verification process must include appropriate identity checks, client consent, location verification and security measures.
Requirements include capturing live GPS coordinates and timestamps, preventing the use of spoofed IP addresses, VPNs and proxy servers, and matching the client’s live photograph with the photograph in the submitted KYC documents.
The process must also provide end-to-end encryption and involve an authorised official of the intermediary. Concurrent audits are required to maintain the integrity of the verification process.
The revised framework also provides clarity on document requirements.
Intermediaries can verify a client’s Permanent Account Number (PAN) through the Income Tax database without insisting on the original PAN card or a physical copy.
They must collect passport details and an OCI card, wherever applicable, along with the prescribed identity and address documents.
Overseas residential addresses can be used for address verification under the revised requirements. KYC forms and supporting documents can be submitted physically or digitally, with electronic signatures permitted as prescribed.
When Will the New SEBI KYC Rules Apply?
The revised framework will become effective on December 3, 2026, which is 30 days after the November 4 circular.
The changes will apply to eligible individual overseas clients from FATF-compliant countries, including NRIs, OCIs and foreign nationals.
However, investors residing in FATF non-compliant countries will continue to follow the existing KYC requirements.
KYC procedures completed before December 3, 2026, will also continue to be governed by the earlier applicable provisions.
Once the revised framework takes effect, intermediaries will be required to submit the completed KYC information of eligible individual overseas clients to the relevant KRA within three working days of completing the process.
For NRIs and other eligible overseas investors, the decision represents an important step towards reducing documentation difficulties and making access to Indian financial markets more convenient.
