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.
Key documents required for KYC
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.
Video verification subject to safeguards
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.
KYC records to be portable
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.
What happens to foreign nationals seeking FPI registration?
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.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
