- SEBI proposes allowing overseas investors to complete KYC remotely from abroad using video identification.
- The plan eliminates the need for physical presence in India for account opening procedures.
- Digital onboarding would apply to NRIs and foreign nationals in FATF-compliant countries specifically.
India’s markets regulator has proposed letting eligible overseas investors complete securities-market KYC from abroad, removing a requirement that can force them to travel to India before opening an account.
The consultation paper, issued on August 14, 2026, covers NRIs, OCIs and foreign nationals in FATF-compliant countries. It would allow digital document submission and remote video verification. The proposal is not yet a final rule.
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Nithin Kamath, founder and CEO of Zerodha, said the plan could expand a durable source of market inflows.
"SEBI just released a consultation paper proposing a fully digital onboarding process for NRIs, without needing them to be physically present in India! Kudos to SEBI for this pragmatic move. This is huge because NRIs tend to have large amounts of capital to invest and are a highly durable source of inflows into Indian markets."
Kamath said his platform has more than 50,000 NRI investors, with about 80% active. He has described the existing process as a major bottleneck.
The regulator is accepting public comments until September 4, 2026. The proposed framework would apply to individual Persons Resident Outside India, or PROIs, who live in countries that comply with the Financial Action Task Force.
Remote verification would replace the India-presence hurdle
The proposed process would use video-based customer identification and electronic KYC records while the investor remains overseas. Intermediaries could capture latitude and longitude in the client’s country of residence, rather than requiring location data from India.
The location would need to match the address proof submitted by the investor. Existing rules require digital onboarding systems to capture a client’s latitude and longitude within India, a condition that can make a trip necessary simply to open a trading account.
The proposed safeguards include live GPS checks, IP validation, face-liveness checks and supervision of the video process. Those controls are intended to detect spoofing and reduce misuse of remote verification.
Investors in FATF non-compliant jurisdictions would remain under the existing process. The relaxed route would not cover them.
Portable KYC could remove repeated paperwork
The consultation would also let intermediaries rely on KYC completed by another registered intermediary or regulated entity. Records could move through KYC Registration Agencies or the Central KYC Records Registry.
An investor would therefore complete the verification once and use the record across registered intermediaries. The proposal also expands the officials who may certify documents to include officials of overseas banks that maintain relationships with Indian banks.
Industry estimates put the practical onboarding period at roughly 1–2 days, compared with weeks of physical documentation. The change could also remove trips to Indian embassies for physical document notarization when investors begin using Indian securities accounts from abroad.
Amarjeet Singh, a whole-time member of the regulator, said on August 18, 2026, that officials were also considering a “new category of distributors” to help retail and overseas investors with KYC formalities and documentation. He linked that work to broader participation in debt markets.
A larger investment channel is already taking shape
The proposal arrives after other measures aimed at bringing overseas investors closer to India’s financial markets. On December 10, 2025, the regulator relaxed geo-tagging requirements for NRIs carrying out re-KYC, allowing them to modify records from abroad.
The Ministry of Finance then amended the Foreign Exchange Management (Non-debt Instruments) Rules, 2019, on June 12, 2026. The amendment permitted foreign nationals to invest in Indian securities without using the restrictive Foreign Portfolio Investment route.
Union Budget 2026-27 reforms also raised the limit for an individual NRI’s investment in a listed company from 5% to 10%. The overall NRI cap increased from 10% to 24%.
The currency has moved in the same direction for overseas buyers. In early 2025, the rupee stood at approximately 85 INR/$; by August 2026, it had moved above 95 INR/$. Research on the proposal estimates that shift gave NRIs an 11.8% increase in domestic purchasing power before market gains.
That combination could make Indian equities, mutual funds, portfolio management services and other securities-market products easier to access. Faster account opening would allow savings held overseas to enter those channels sooner.
The consultation still leaves the final safeguards open
Tuhin Kanta Pandey, chairman of the regulator, has said, “Easy KYC for NRIs is an urgent goal.” The proposed checks show how the agency is pairing that objective with controls on identity and location.
The video process would not simply replace every existing check with a digital form. Intermediaries would need to establish that the person is live, that the connection and location are consistent, and that submitted documents support the stated overseas address.
The proposal’s effect will depend on the final framework and the way intermediaries implement it. Comments remain open through September 4, 2026.
If adopted, the changes would give eligible NRIs, OCIs and foreign nationals a route to complete onboarding without first arranging travel to India. The consultation paper also places that access inside a wider policy shift toward easier overseas participation in Indian securities markets.
