The Securities and Exchange Board of India (SEBI) has relaxed KYC norms for overseas individual investors. The move will allow eligible investors to complete digital onboarding without visiting India.
The revised framework will benefit Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals residing in countries compliant with the Financial Action Task Force (FATF).
Announced on Wednesday, November 4, the changes will take effect from December 3, 2026. The revised KYC norms aim to simplify investor onboarding and reduce procedural hurdles for overseas individuals seeking access to India's securities markets.
Under the new framework, SEBI-registered intermediaries, including custodian banks and brokers, can accept digital submissions of KYC information and supporting documents from eligible overseas clients.
Key Highlights
- Overseas investors from FATF-compliant countries can complete digital KYC without being physically present in India.
- Intermediaries can rely on existing KYC records maintained by other regulated entities.
- Video-based verification can replace physical in-person verification where required.
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Existing KYC Records Can Be Reused Across Intermediaries
The regulator has also introduced greater portability of KYC records to reduce repeated verification for overseas investors. Intermediaries can rely on KYC completed by another SEBI-registered intermediary or an entity regulated by another financial sector regulator.
They can access these records through KYC Registration Agencies (KRAs) or the Central KYC Records Registry (CKYCRR). KRAs will also identify individual details as validated when they have been verified against official databases.
However, the intermediary onboarding the client will remain responsible for ensuring KYC compliance and conducting enhanced due diligence based on the client's risk profile.
The revised framework also allows intermediaries to accept electronic submission of KYC forms and specimen signatures, subject to prescribed verification requirements.
Video Verification Allowed, FPI Rules Remain Unchanged
Where physical in-person verification is not feasible, intermediaries can conduct Video In-Person Verification (VIPV). The process will include safeguards such as the presence of an authorized official and concurrent audits.
The revised KYC norms will also apply to the re-KYC process for eligible overseas individual clients residing in FATF-compliant countries.
However, the relaxation does not cover every foreign investor category. Foreign nationals seeking registration as Foreign Portfolio Investors (FPIs) will continue to follow SEBI's existing FPI framework.
Similarly, individuals residing in FATF non-compliant countries will remain subject to the existing KYC requirements. The changes are expected to make it easier for overseas individuals to access India's securities markets while retaining the regulatory checks required for investor verification.
