SEBI proposes easier KYC norms for NRIs, OCIs and foreign investors

The Securities and Exchange Board of India (SEBI) has proposed easing Know Your Client (KYC) requirements for non-resident individuals, including Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals, in order to make it simpler for them to participate in India's securities market. The proposed changes include the ability to complete the process digitally, without the need for physical presence in India, and allowing securities market intermediaries to rely on KYC completed by entities regulated by other financial sector regulators.

SEBI also suggests making the collection of an email ID mandatory for these clients and expanding the list of officials who can certify documents for KYC. The regulator also aims to make KYC records portable, allowing PROI clients to use their records across multiple intermediaries, reducing the need to submit the same information repeatedly.

Additionally, safeguards for Video In-Person Verification (VIPV) are proposed, including measures to prevent IP spoofing, concurrent audits and compliance with cybersecurity requirements. These proposals are part of SEBI's efforts to streamline investor onboarding while maintaining safeguards against financial risks such as money laundering and fraud.