2 weeks ago
SEBI proposes digital KYC for NRIs, OCIs without physical presence
SEBI is the group in India that watches over the country's stock market and investments.
Before people can invest, they have to finish a check called KYC, which proves who they are.
Right now, Indians living in other countries have to travel all the way to India just to do this check.
SEBI has a new idea: let these investors do the check online from wherever they live.
To make sure it is safe, there will be extra checks, like showing the person's face and recording where they are.
The place they are in must match the address on their documents.
Their information could also be shared between different investment companies, so they do not have to keep repeating the check.
This would make it much easier for Indians abroad to invest in their home country.
SEBI has proposed allowing eligible NRIs, OCIs and foreign nationals to complete digital KYC for India's securities market from abroad.
Under current rules, digital onboarding requires the investor to be physically present in India.
The proposal covers individual Persons Resident Outside India (PROIs) in FATF-compliant countries.
Safeguards would include liveness checks, verification with an authorised representative, and live capture of the investor's location.
SEBI also proposed making KYC records portable across intermediaries to reduce repeated verification for overseas investors.
- Who
- The Securities and Exchange Board of India (SEBI), acting on behalf of eligible NRIs, OCIs and foreign nationals living abroad.
- What
- A proposal to allow eligible overseas investors to complete digital KYC for India's securities market without being physically present in India.
- Where
- India's securities market, with onboarding permitted for investors located in FATF-compliant countries abroad.
- When
- Date of the announcement is not specified in the article.
- Why
- To remove the hurdle of physical presence and make it easier for the Indian diaspora to invest, channelling overseas savings into Indian capital markets.
Key facts
- Regulator
- Securities and Exchange Board of India (SEBI)
- Proposal
- Digital KYC for individual PROIs without physical presence in India
- Eligible investors
- NRIs, OCIs and foreign nationals in FATF-compliant countries
- Current rule
- Digital onboarding requires the client to be physically present in India
- Safeguards
- Liveness check, authorised representative verification, live latitude/longitude capture, no spoofed IP addresses
- KYC portability
- Records portable across intermediaries via KRAs, with attributes marked as 'validated'
- Excluded
- Foreign portfolio investor (FPI) registration, governed by a separate framework
Sources
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