SEBI NRI KYC Norms: Digital Onboarding From 3 December

The SEBI NRI KYC circular lets non-resident Indians, Overseas Citizen of India (OCI) cardholders and foreign nationals complete digital KYC without being physically in India, if they are in FATF-compliant countries. The circular, dated 4 November 2026, applies to onboarding of individual persons resident outside India (PROI) from 3 December 2026.

The circular, titled “Review of Know Your Client process for individual Person Resident Outside India (PROI) clients”, applies to SEBI-registered intermediaries, recognised stock exchanges, clearing corporations and depositories.

What Does the SEBI NRI KYC Circular Change?

• Digital KYC: the requirement that a client be physically in India during digital KYC is relaxed for clients in FATF-compliant countries.
• Reliance on other KYC: intermediaries may rely on KYC done by another SEBI-registered intermediary (via KRA records) or by an entity regulated by a financial sector regulator (via CKYCRR records). The intermediary stays fully responsible, including for enhanced due diligence.
• PAN: verified with the Income Tax database without needing the original or a copy.
• Passport and OCI card: a passport copy and, where applicable, an OCI card are collected. The KRA verifies the passport.
• Address: for these clients the current address is an overseas address. A foreign national whose ID lacks an address may provide a foreign government document or a letter from a foreign embassy or mission in India.
• Timeline: KYC information must reach the KRA within 3 working days of completing KYC.
• Language: documents must be in English, or translated and attested by a certifying authority.

How Will Video Verification Work?

Physical in-person verification (IPV) remains preferred. Where it is not feasible, video-based IPV (VIPV) must meet safeguards that include recorded consent, random action prompts to show the interaction is live, uninterrupted video with live GPS geo-tagging and a tamper-proof timestamp, no spoofed IPs, VPNs or proxies, end-to-end encryption, face liveness and spoof detection, and concurrent audit. The client’s IP must originate from India or a FATF-compliant country and match the country in the KYC form and ID. An authorised official must be present.

Market and Trade Reaction

No market reaction was found in the sources reviewed.

What Happens Next?

The rules take effect for onboarding individual PROI clients on 3 December 2026, thirty days after issue. Clients in FATF non-compliant countries remain under the existing KYC process. KYC completed before that date stays governed by the earlier provisions. The circular also supersedes SEBI’s KYC Master Circular of 12 October 2023, to the extent covered, and the 10 December 2025 circular on geo-tagging relaxation for NRI re-KYC.

Frequently Asked Questions

Who does the SEBI circular apply to?

Individual NRIs, OCI cardholders and foreign nationals who are persons resident outside India, onboarded through SEBI-registered intermediaries, exchanges, clearing corporations and depositories.

When do the new KYC rules start?

3 December 2026, thirty days after the circular dated 4 November 2026.

Do the relaxations apply to all countries?

No. Clients in FATF non-compliant countries remain under the existing KYC process.

Source: SEBI circular HO/38/30/12(3)2026-MIRSD-POD2/I/25175/2026, 4 November 2026.