Sebi Relaxes KYC Rules for Overseas Individual Investors

The Securities and Exchange Board of India relaxed know-your-customer (KYC) requirements for Persons Resident Outside India, including non-resident Indians, overseas citizens of India, and foreign nationals. Effective December 3, individuals residing in Financial Action Task Force (FATF)-compliant countries can complete digital onboarding and submit supporting documents without being physically present in India.

The revised framework enables the electronic submission of KYC forms and specimen signatures. Verification will be conducted via Video In-Person Verification, which includes safeguards such as face-liveness checks and live geo-tagging. Custodian banks and brokers may utilize these video-based methods when physical presence is not feasible. These changes also apply to the re-KYC process for eligible clients.

To increase efficiency, the regulator expanded the portability of KYC records. Intermediaries can now share validated attributes or rely on KYC performed by other registered intermediaries or financial regulators through the Central KYC Records Registry or KYC Registration Agencies. While intermediaries may accept overseas addresses as proof of residence, those in FATF non-compliant countries must still follow physical KYC requirements. Foreign nationals seeking investing licenses through the foreign portfolio investor route remain subject to the existing FPI framework.