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 eligible Non-Resident Indians, Overseas Citizens of India and foreign nationals in FATF-compliant countries to complete KYC digitally from overseas for investments in India’s securities market. They would not…
The Story in Brief
SEBI has proposed allowing eligible Non-Resident Indians, Overseas Citizens of India and foreign nationals in FATF-compliant countries to complete KYC digitally from overseas for investments in India’s securities market. They would not need to travel to India for onboarding. The proposal includes liveness checks, verification before an authorised representative, live capture of latitude and longitude, and safeguards against spoofed IP addresses.
SEBI also proposes making KYC records portable across registered intermediaries. Verified details could be reused, reducing repeated checks. The regulator may allow self-declarations for current addresses where documents can be verified through official databases. The proposals do not cover foreign portfolio investor registration and will take effect only after SEBI finalises them.
The Indian Opinion
The lazy version is that SEBI is weakening KYC to attract foreign money. It is doing the opposite by adding location, liveness and fraud checks while removing a costly travel requirement. The equally rosy claim that portability will end paperwork also needs caution, since intermediaries must still verify records and eligibility. The real test is whether overseas applicants can complete onboarding securely without a rise in rejected or fraudulent accounts.
Sources (2): sebi.gov.in, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
