The Securities and Exchange Board of India (SEBI) has introduced major changes to simplify the Know Your Customer (KYC) process for Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and foreign nationals. These adjustments, set to take effect on December 3, 2026, aim to ease documentation burdens and speed up digital onboarding from abroad.
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## What’s Changing in KYC Norms
For individuals living outside India (known collectively as PROIs—Persons Resident Outside India) in FATF-compliant countries, SEBI is doing away with the requirement to be physically present in India for digital KYC. Now, intermediaries can accept KYC information and supporting documents digitally from these overseas clients.
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## Portability of KYC Records
SEBI has also enabled portability of KYC records among registered intermediaries. Whether or not all identity attributes have undergone validation, these records will now move with the client: from one intermediary to another.
To support portability, the regulator has strengthened the role of KYC Registration Agencies (KRAs). KRAs will tag certain client attributes as “validated” when matched against official databases. Intermediaries may rely on KYC records maintained by SEBI-registered intermediaries or financial sector regulators including RBI, IRDAI, PFRDA, and IFSCA—via the Central KYC Records Registry.
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## Key Requirements for Identity and Address
Clients must still provide documents—passport, Permanent Account Number (PAN), OCI card (if relevant)—alongside KYC information in the format SEBI prescribes. The PAN will be cross-checked with India’s Income Tax database, and passport verification will occur whenever possible.
Regarding address proof, officially valid documents or designated equivalents will suffice—even for those residing overseas. An overseas address can now serve as a current address for PROIs.
Original documents may not always be available, so SEBI has allowed for digital equivalents, like documents obtained via DigiLocker, Aadhaar-based e-KYC, or attested copies from Indian embassies or consulates.
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## Video In-Person Verification & Identity Safeguards
When physical presence verification isn’t feasible, intermediaries can use Video In-Person Verification (VIPV), under strict security protocols. Requirements include:
– Live video recording with GPS, timestamps, facial liveness checks
– Verifiable IP addresses matching the country declared, disallowing spoofed IPs, VPNs, or proxies
– Signature verification: initial digital specimen must later match a wet signature during VIPV
– Presence of an authorised official during VIPV
– Concurrent audits of the VIPV process to ensure system integrity
Mobile numbers (Indian or international) and email IDs must also be obtained and verified. If a mobile number isn’t verifiable, communication must still happen through a verified email.
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## What’s Not Changing
New norms apply only to clients residing in FATF-compliant countries. For those in countries that don’t meet FATF standards, existing KYC rules remain in place.
Any KYC completed before December 3, 2026 will still be governed by the pre-existing framework.
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## Why the Shift Matters
This reform aims at removing friction in financial markets for overseas Indians and foreign nationals. By enabling digital submissions from abroad, reducing duplicated effort through record portability, and bringing modern identity verification tools like VIPV into play, SEBI is striving to make regulatory compliance more efficient.
Intermediaries remain responsible for due diligence; they must gauge risk profiles and ensure compliance even under the revised regime.
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These updates mark a substantial step forward for India’s capital markets and its NRI investor base. For NRIs and OCIs living abroad, simpler KYC procedures, digitised identity proofs, and greater flexibility in proving identity and address remove long-standing barriers. As these norms kick in from December 3, 2026, both clients and intermediaries should prepare for streamlined onboarding processes.
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