Sebi allows digital KYC onboarding for NRIs, OCIs and foreign nationals from FATF-compliant countries from December 3

Key facts

• The Securities and Exchange Board of India (Sebi) relaxed know-your-customer (KYC) requirements for persons resident outside India, allowing digital onboarding without physical presence in India, effective December 3.
• The revised framework covers non-resident Indians (NRIs), overseas citizens of India (OCIs), and foreign nationals residing in Financial Action Task Force (FATF)-compliant countries, while clients in FATF non-compliant countries continue under existing KYC rules.
• Intermediaries can accept digital submission of KYC information and documents, and KYC records will be portable and shareable across intermediaries via KYC Registration Agencies (KRAs) or the Central KYC Records Registry.
• Intermediaries must collect passport copies and OCI cards where applicable, accept overseas addresses as proof of address, and permit electronic submission of specimen signatures verified during video-based in-person verification.
• Sebi mandated an authorised official's presence during video verification, subjected the process to concurrent audit, and required intermediaries to provide completed KYC information to KRAs within three working days.
• Intermediaries remain ultimately responsible for client KYC, including enhanced due diligence based on risk profiles, and the revised provisions also apply to re-KYC of clients in FATF-compliant countries.