The Securities and Exchange Board of India has relaxed onboarding rules for overseas investors. The market regulator now permits digital verification without requiring a physical presence in India.
The revised framework takes effect on December 3. It simplifies the investment process for non-resident Indians, foreign nationals, and overseas citizens residing in FATF-compliant countries.
Investors living in non-compliant jurisdictions must follow existing rules. Meanwhile, market intermediaries can now accept documents through digital channels from eligible international clients.
In a major reform, SEBI made KYC records portable across intermediaries. Investors can use existing records with one firm to transact with another seamlessly.
Intermediaries may also rely on verification done by other regulated entities. They can pull these records directly from registered KYC agencies or central registries.
Overseas investors must submit copies of their passports and relevant cards. The regulator allows foreign residential addresses to serve as valid address proof.
Clients may submit forms digitally or physically during the process. They can provide specimen signatures electronically, which officials verify through video interactions.
SEBI mandates that an authorized official must attend video verifications. Regulators will also conduct concurrent audits to maintain strict operational safeguards.
Intermediaries bear ultimate responsibility for all client due diligence. They must apply enhanced verification measures to higher-risk investor profiles.
Firms must upload completed client records within three working days. The new provisions also govern re-KYC procedures for existing overseas clients.
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