The Securities and Exchange Board of India (SEBI) has relaxed the requirement for individual Persons Resident Outside India (PROI) clients to be physically present in India during digital onboarding, allowing eligible overseas investors to complete the Know Your Client (KYC) process remotely.
In a circular dated November 4, 2026, SEBI allowed Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals residing in countries compliant with the Financial Action Task Force (FATF) to submit their KYC details and supporting documents digitally.
Under the existing framework, intermediaries were required to ensure that the client's physical location was in India during digital KYC, effectively restricting overseas clients from completing the process remotely.
SEBI has also directed KYC Registration Agencies (KRAs) to mark individual details in KYC records as 'validated' when verified through official databases. The records can still be shared with other intermediaries even if some details remain unvalidated.
Further, intermediaries may rely on KYC records maintained by KRAs or the Central KYC Records Registry, even if verified by another regulated entity. However, they remain responsible for KYC compliance and conducting enhanced due diligence based on the client's risk profile.
The circular also eases documentation requirements. Intermediaries must verify the client's PAN against the Income Tax database without insisting on the original or a copy. They must also collect a passport copy and, where applicable, an OCI card. KYC forms may be submitted physically or digitally with electronic signatures.
For identity and address verification, intermediaries must collect any one of the specified officially valid or deemed officially valid documents. The circular also clarifies that an individual PROI client's current address must be their overseas address.
If physical In-Person Verification is not feasible, intermediaries may conduct Video In-Person Verification. The process must include safeguards such as recording the client's consent, capturing live GPS coordinates and timestamps, blocking spoofed IP addresses, VPNs and proxy servers, and matching the client's photograph with the one in the KYC documents. It must also ensure end-to-end encryption, the presence of an authorised official and concurrent audits.
Intermediaries must provide the KYC information of individual PROI clients to the KRA within three working days of completing the process.
The revised provisions took effect on December 3, 2026.