SEBI Relaxes KYC Requirements For NRIs, OCIs And Foreign Nationals, Allows Overseas Investors To Complete Digital Verification Remotely

The Securities and Exchange Board of India (SEBI) has changed its Know Your Client (KYC) rules for overseas investors. Announced on Wednesday, the decision allows non-resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals to complete digital onboarding from outside India.

The changes are intended to make it easier for overseas investors to enter India's securities markets. They also reduce the need for investors to travel to India to complete verification formalities.

Overseas Investors Can Complete KYC Without Visiting India

Investors residing in countries that meet Financial Action Task Force (FATF) standards can now complete KYC formalities online.

Previously, digital KYC required investors to be physically present in India. Those living overseas could not complete the process remotely.

SEBI has also revised the rules governing the sharing of KYC records among market intermediaries. These records can now be transferred even when some of the information has not been individually validated. From 3 December 2026, eligible investors residing in FATF-compliant countries will be able to complete KYC formalities online without visiting India.

KYC Registration Agencies (KRAs) will identify which details have been verified using official databases or original sources of information.

SEBI Permits Reuse Of Existing KYC Records

Market intermediaries can now use KYC information previously collected by another SEBI-registered intermediary. They may also rely on records maintained by institutions regulated by other financial sector authorities.

The information can be accessed through KRAs or the Central KYC Records Registry. However, responsibility for completing the required checks will remain with the intermediary accepting the investor.

The intermediary must also conduct further checks, where required, and comply with the relevant due diligence rules.

PAN Verification And Address Requirements Simplified

SEBI has also made changes to the documents required during onboarding.

Intermediaries can check Permanent Account Number (PAN) details directly against the Income Tax database. Investors will therefore not have to produce their original PAN card or submit a physical copy for this verification.

An overseas residential address can also be used as proof of address.

Where an investor cannot attend physical verification, intermediaries may use Video In-Person Verification (VIPV) instead.

Together, these changes provide overseas investors with more ways to complete KYC while leaving the responsibility for verification and compliance with the intermediaries.

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