SEBI relaxes KYC rules for NRIs, OCIs: Can overseas investors now onboard digitally from abroad? Decoded
A Ksheerasagar
The Securities and Exchange Board of India (SEBI) has relaxed Know Your Client (KYC) requirements for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and foreign nationals, allowing them to complete digital onboarding while residing overseas, subject to certain conditions.
In a circular dated November 4, 2026, the market regulator said individual Persons Resident Outside India (PROIs) located in countries compliant with the Financial Action Task Force (FATF) can submit their KYC information and supporting documents digitally to intermediaries.
The move removes the earlier requirement that clients must be physically present in India while completing digital KYC, which had effectively restricted investors residing overseas from completing the onboarding process remotely.
The revised framework will come into effect from December 3, 2026, or 30 days from the date of the circular. It will apply to the onboarding of individual PROI clients, except those residing in FATF non-compliant countries.
Intermediaries will collect the investor's PAN, passport, and OCI card, wherever applicable. PAN details will be verified against the Income Tax Database without requiring the original card or a physical copy.
Investors can submit KYC forms physically, through scanned copies with electronic signatures, or digitally signed forms. Proof of identity and address will also be required, with overseas addresses accepted for PROI clients.
Foreign nationals can provide government-issued documents or a letter from a foreign embassy or mission in India if their identity documents do not mention their address, according to SEBI circular.
Foreign nationals whose identity documents do not mention their address can submit a document issued by a government department in the foreign jurisdiction or a letter issued by a foreign embassy or mission in India as address proof.
Where physical verification is not feasible, intermediaries can conduct Video In-Person Verification (VIPV). The process must include live GPS coordinates, date and time stamps, random actions to prevent pre-recorded interactions and safeguards against spoofed IP addresses, VPNs and proxy servers.
An authorised intermediary official must be present during the verification, which will be subject to concurrent audit. Clients submitting digital specimen signatures must also provide a wet signature during VIPV for verification.
SEBI has made KYC records portable across intermediaries, even if every individual attribute has not been validated. KRAs will mark attributes as 'validated' after verification against official databases.
Intermediaries can also rely on KYC records maintained by other SEBI-registered intermediaries or entities regulated by other financial sector regulators. However, the intermediary onboarding the client will retain ultimate responsibility for KYC compliance and enhanced due diligence.
SEBI has clarified that foreign nationals seeking registration as Foreign Portfolio Investors (FPIs) will continue to be governed by the applicable provisions of the Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors dated May 30, 2024, along with subsequent amendments.
The November 4 circular also supersedes certain existing KYC provisions, including the December 10, 2025, circular on relaxation of geo-tagging requirements in India for NRIs undertaking re-KYC.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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