Now Reading: Sebi proposes digital KYC for NRIs and OCIs abroad
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Sebi proposes digital KYC for NRIs and OCIs abroad
Sebi has proposed allowing NRIs, OCIs and eligible foreign nationals in FATF-compliant countries to complete securities-market KYC digitally from abroad. The move would remove the current requirement for overseas clients to be…
The Story in Brief
Sebi has proposed allowing NRIs, OCIs and eligible foreign nationals in FATF-compliant countries to complete securities-market KYC digitally from abroad. The move would remove the current requirement for overseas clients to be physically present in India during digital onboarding. Investors could submit electronic forms and documents through digital channels, while intermediaries could use DigiLocker records, Aadhaar authentication and documents certified by approved authorities. Sebi has also proposed accepting a cropped specimen-signature image, with a wet signature collected during video in-person verification. Public comments on the consultation paper are invited until 4 September.
The proposed safeguards include liveness checks, facial matching, live GPS capture, protection against spoofed IP addresses, encryption and concurrent audits. The location recorded during onboarding would need to match the country in the investor’s address proof, Business Today reports. Sebi also wants individual KYC attributes to be marked as validated and made portable, allowing another intermediary to reuse verified information while completing further checks where needed.
The Indian Opinion
Claims that easier overseas access will automatically unleash a flood of investment are premature. Equally, treating every digital KYC relaxation as a fraud risk ignores the proposed location, liveness and audit controls. The practical test is whether intermediaries can verify identity without turning the process back into paperwork, while regulators track rejected or fraudulent applications after implementation. Sebi’s consultation responses and subsequent fraud data will show whether convenience has come at an acceptable cost.
Sources (2): livemint.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
