New Delhi, Aug 19: The Securities and Exchange Board of India (SEBI) has proposed easing of the ‘Know Your Client’ (KYC) process for individual Persons Resident Outside India (PROIs), including Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals.
The proposal would allow eligible overseas investors located in Financial Action Task Force (FATF)-compliant countries to complete digital onboarding without being physically present in India.
Under the existing framework, intermediaries are required to ensure that a non-resident client’s physical location is in India during digital KYC.
SEBI has proposed removing this requirement for eligible PROI clients and allowing intermediaries to accept KYC records and related documents digitally from investors located abroad.
The proposal is aimed at simplifying the onboarding process and reducing the operational difficulties faced by overseas investors. Sebi said the existing requirement prevents intermediaries from providing complete digital onboarding to PROI clients while they are outside India.
Under the proposed framework, investors would be permitted to submit KYC forms and supporting documents digitally, including through electronic or digital signatures.
The move would also reduce dependence on physical forms and courier-based submission, which can be time-consuming and costly.
Sebi has also proposed that KYC Registration Agencies treat KYC records of individual PROIs as portable, with individual attributes tagged as “validated” where they have been verified against official or source databases.
The proposed changes would also allow an eligible PROI client to provide a self-declaration of their current address, provided the officially valid document has been verified through an official or source database.
SEBI said the changes are intended to enable more seamless digital onboarding in India’s securities market while maintaining KYC and anti-money laundering safeguards.
The regulator has invited public comments on the consultation paper as it reviews the existing onboarding framework for individual PROI clients. (BVI)
