In short: In a circular dated 4 November 2026, SEBI has relaxed the rule that forced clients to be physically in India during digital KYC. Individual NRIs, OCI cardholders and foreign nationals located in a country compliant with the Financial Action Task Force (FATF) standards can now submit KYC information and documents digitally to market intermediaries from abroad.
What has SEBI changed?
SEBI's earlier KYC Master Circular of 12 October 2023 required an intermediary to make sure that the client was physically in India during digital KYC. The new circular, addressed to SEBI-registered intermediaries, recognised stock exchanges, clearing corporations and depositories, reviews that framework after considering representations from market participants.
The circular covers an "individual Person Resident Outside India" (PROI) client. For this purpose, that means an NRI, an Overseas Citizen of India (OCI) cardholder or a foreign national.
Key changes at a glance
- Presence in India no longer needed: for an individual PROI client located in an FATF-compliant country, intermediaries may accept KYC information and supporting documents digitally.
- "Validated" tags: a KYC Registration Agency (KRA) will mark an individual attribute in the KYC record as "validated" when it has been checked against an official or source database.
- Portability: every KYC record can be shared with another intermediary, whether or not each attribute is validated.
- Reliance on others' KYC: an intermediary may rely on KYC done by another SEBI-registered intermediary, or by an entity regulated by another financial sector regulator, based on records from the KRA or the Central KYC Records Registry (CKYCRR).
- Video verification safeguards: an authorised official of the intermediary must be present during Video In Person Verification (VIPV), and the VIPV process is subject to concurrent audit.
How the onboarding process works
The intermediary must identify the client, verify identity and record the purpose and intended nature of the business relationship. It should ask for the client's PAN and CKYC ID, if available, and then retrieve existing records from the KRA and CKYCRR. It should ask for fresh details only in limited situations, such as when:
- the client's records have changed;
- the retrieved details are incomplete or do not meet current norms;
- the validity of an officially valid document has lapsed;
- the intermediary considers it necessary to verify identity or address; or
- enhanced due diligence or risk profiling requires it.
The documentation requirements for individual PROI clients include the following:
| Item | What the circular says |
|---|---|
| PAN | Verified against the Income Tax database. The client need not produce the original PAN or a copy. |
| Passport and OCI card | A passport copy is collected, plus the OCI card where applicable. Verification of the passport is to be done if feasible. |
| KYC form | Uses the CKYC template for individuals. It can be an original physical form, a scanned copy under electronic signature, or a digital form under electronic signature. |
| Proof of identity and address | Any one specified officially valid document (or deemed one) for each. The current address of an individual PROI client must be an overseas address. |
If a foreign national's identity document carries no address, the intermediary may accept a document issued by a foreign government department, or a letter from a foreign embassy or mission in India, as proof of address.
The intermediary should normally see and verify the originals of identity and address documents and collect self-attested copies. Where the original is not produced, it may collect an equivalent e-document through DigiLocker, or one issued by the issuing authority. The "electronic signature" mentioned in the circular has the meaning given in the Information Technology Act, 2000.
Who is affected?
The main beneficiaries are NRIs, OCI cardholders and foreign nationals who want to open accounts with brokers, depositories and similar intermediaries but are currently abroad. Intermediaries, stock exchanges, clearing corporations, depositories and KRAs must adjust their processes.
What should you do?
- Check whether the country you are living in is compliant with FATF standards, as listed by FATF. The relaxation is tied to that.
- Keep your passport, OCI card (if you hold one), PAN, CKYC ID and overseas address proof ready.
- Ask your intermediary how it will run VIPV and when it will start accepting digital onboarding from abroad. The circular text available to us does not state that date.
Frequently asked questions
Can anyone abroad now complete KYC online?
Not everyone. The relaxation applies to individual NRIs, OCI cardholders and foreign nationals who are located in an FATF-compliant country.
Do I still need to appear before the intermediary?
Video In Person Verification remains part of the framework. An authorised official of the intermediary must be present during it. If you submit your specimen signature digitally, you must sign in wet ink during the video verification.
Can I use my existing KYC with another intermediary?
The circular says KYC records are portable and can be shared with another intermediary. It also allows intermediaries to rely on KYC done by SEBI-registered or other financial sector regulated entities, based on KRA or CKYCRR records.