Policies · BFSI
SEBI has revised its KYC framework to permit individual persons resident outside India in FATF-compliant countries to onboard digitally with intermediaries without travelling to India.
✦ AI SUMMARY 30-second read
- The revised framework takes effect on December 3, 2026, removing the earlier requirement for physical presence in India during digital KYC.
- Video In-Person Verification with live GPS coordinates, timestamps and anti-spoofing safeguards is permitted where physical verification is not feasible.
- KYC records will be portable across SEBI-registered intermediaries, with ultimate compliance responsibility resting with the onboarding intermediary.
Why it matters: The change opens remote digital onboarding to a large pool of overseas Indian and foreign investors previously blocked by residency requirements.
This summary was generated by AI. Editors may review and update it.
Document details
| Document type | Rules & Regulation |
|---|---|
| Issued by | SEBI |
| Region | India |
| Published | 4 November 2026 |
SEBI issued a circular on November 4, 2026, relaxing KYC requirements for Non-Resident Indians, Overseas Citizens of India, and foreign nationals, enabling them to complete onboarding digitally from outside India.
The circular applies to individual Persons Resident Outside India located in countries that are compliant with the Financial Action Task Force. Those residing in FATF non-compliant countries are excluded from the revised framework.
The new rules come into force on December 3, 2026, which is 30 days from the date of the circular.
What the circular says
Under the revised framework, intermediaries must collect the investor's PAN, passport, and OCI card where applicable. PAN details will be verified against the Income Tax Database and no physical or original card copy is required.
KYC forms may be submitted physically, as scanned copies with electronic signatures, or as digitally signed documents. Overseas addresses are accepted as proof of address for PROI clients.
Foreign nationals whose identity documents do not state an address may submit a document issued by a government department in the foreign jurisdiction, or a letter from a foreign embassy or mission in India, as address proof.
Video verification requirements
Where physical verification is not practicable, intermediaries may conduct Video In-Person Verification. The process must capture live GPS coordinates, date and time stamps, and random actions to guard against pre-recorded submissions.
Safeguards against spoofed IP addresses, VPNs, and proxy servers are also mandatory. An authorised official of the intermediary must be present during the session, which is subject to concurrent audit.
Clients who submit a digital specimen signature must additionally provide a wet signature during the video verification for cross-checking.
Portability and compliance responsibility
SEBI has made KYC records portable across intermediaries even where not every individual attribute has been validated. KYC Registration Agencies will mark attributes as validated after checking against official databases.
Intermediaries may rely on KYC records held by other SEBI-registered intermediaries or entities regulated by other financial sector regulators. However, the intermediary onboarding the client retains ultimate responsibility for KYC compliance and enhanced due diligence.
What happens next
Foreign nationals seeking registration as Foreign Portfolio Investors will continue to be governed by the Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors dated May 30, 2024, along with its subsequent amendments.
The November 4 circular also supersedes certain earlier KYC provisions, including the December 10, 2025, circular on relaxation of geo-tagging requirements in India for NRIs undertaking re-KYC.
