Attention NRIs! Sebi eases re-KYC norms, no physical presence required in India. Details here

The markets regulator, Sebi, on Wednesday simplified the re-KYC process for Non-Resident Indians (NRIs) by eliminating the requirement for them to be physically present in India during the digital verification process.

The move aims to make the re-KYC process smoother and more accessible for NRIs.

Sebi, in a recent circular, has decided to amend the current provisions to simplify re-KYC access for NRIs, following input from various stakeholders.

The requirement for an individual's physical presence in India during the digital onboarding process for existing clients has been relaxed for the re-KYC process, the regulator said.

The circular says, “The requirement of physical location of client being in India during digital onboarding shall be relaxed for undertaking re-KYC for existing clients.”

What is re-KYC?

Re-KYC (Re-Know Your Customer) involves updating or revalidating a customer's KYC information with a financial institution or intermediary.

The digital KYC app must still utilise tools such as random prompts, time-stamping, and geo-tagging to verify that interactions are authentic.

Although onboarding still requires an India-based location, re-KYC for existing NRI clients can now be completed from overseas.

The app must also ensure that the GPS location corresponds with the country listed in the client's address proof and must block any spoofed IP connections.

The circular has been issued following Sebi's consultation paper on October 23. “SEBI received representation from multiple stakeholders to ease KYC access for Non-Resident Indians (NRIs). SEBI has decided to modify the existing provisions under Master Circular on KYC dated October 12, 2023, to ease the re-KYC or KYC modification process for NRIs,” the paper read.

“In this respect, the requirement of physical location being in India shall be relaxed for NRI clients to undertake due diligence through digital mode,” it added.

Sebi Chief flagged the need to ease norms

The latest circular comes almost two months after Sebi Chief Tuhin Kanta Pandey emphasised the need to create a simple and secure KYC process for NRIs, aiming to encourage their involvement in the securities market.

"We have a long way to go in investor awareness. We have simplified KYC norms and permitted transactions and securities as soon as this process is completed. However, we are yet to establish an easy and secure KYC access for NRIs to facilitate their participation in the security market. This will be an urgent goal for us," ANI quoted Pandey during his address at the BFF Capital Market Confluence 2025 in Mumbai.