Mumbai, November 4, 2026 (Yes Punjab News)
The Securities and Exchange Board of India (SEBI) on Wednesday relaxed know-your-customer (KYC) requirements for persons resident outside India (PROIs), allowing eligible overseas investors from Financial Action Task Force (FATF)-compliant jurisdictions to complete digital onboarding without being physically present in India.
The revised framework will come into effect on December 3 and is aimed at simplifying the investment process for non-resident Indians (NRIs), overseas citizens of India (OCIs) and foreign nationals seeking access to Indian financial markets. Investors residing in FATF non-compliant countries will continue to follow the existing KYC requirements.
Under the new norms, market intermediaries can accept KYC information and supporting documents through digital channels. SEBI has also made KYC records portable across intermediaries, allowing investors to use records maintained with one intermediary for transactions with another, even if all individual attributes have not been validated.
Intermediaries will also be permitted to rely on KYC verification conducted by another SEBI-registered intermediary or an entity regulated by another financial sector regulator. Such records may be accessed through KYC Registration Agencies (KRAs) or the Central KYC Records Registry.
Overseas investors will be required to submit passport copies and, where applicable, OCI cards. The regulator has allowed overseas residential addresses as proof of address. Investors can submit KYC forms digitally or physically and provide specimen signatures electronically, subject to verification during video-based in-person verification.
To strengthen safeguards, SEBI has mandated the presence of an authorised official during video verification and concurrent audits of the process. Intermediaries will retain ultimate responsibility for client due diligence and must undertake enhanced verification based on investors’ risk profiles.
The revised framework also requires intermediaries to upload completed KYC records to KRAs within three working days. These provisions will apply to re-KYC processes for existing clients residing in FATF-compliant countries as well.
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