SEBI eases digital KYC for NRI, OCI and foreign investors abroad
From 3 December 2026, SEBI lets brokers accept digital KYC from NRIs, OCI holders and foreign clients abroad in FATF-compliant countries.
- Document
- Circulars
- Dated
- 04 Nov 2026
- Effective
- Onboarding of every individual PROI client, except clients in FATF non-compliant countries, from December 03, 2026 (30 d
- Act by
- December 03, 2026
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Digital KYC from abroad is now allowed for individual NRI, OCI and foreign clients.
- This applies only to clients living in FATF-compliant countries.
- Brokers must have an authorised official present during video verification.
- Video verification will be subject to concurrent audit.
- KRA records will mark verified details as "validated".
In short
SEBI Circular HO/38/30/12(3)2026-MIRSD-POD2/I/25175/2026, issued 4 November 2026, changes how stock brokers and other SEBI-registered firms complete Know Your Client (KYC) checks for individuals living outside India. KYC is the identity and address check every investor must pass before opening an account. The circular exists to make it easier for NRIs, OCI cardholders and foreign nationals to open accounts from abroad.
What has changed
How it worked before
Under the 2023 KYC Master Circular, a client's physical location had to be in India during digital KYC. In effect, a client living abroad could not complete digital KYC from where they were.
What has changed
The India-location requirement is relaxed for individuals in FATF-compliant countries, who can now submit KYC information and documents digitally. Brokers may also rely on KYC done by another SEBI-registered firm or a financial regulator, using records from a KRA or the CKYCRR. Video verification must have an authorised official present and be subject to concurrent audit. Records are portable between firms, and the KRA marks each verified detail as "validated".
Who this affects
Stock brokers, depositories and other SEBI-registered firms that open accounts for individuals who are NRIs, OCI cardholders or foreign nationals. The client must live in a FATF-compliant country. Clients in FATF non-compliant countries are excluded.
An example
Meera is an Indian citizen living in a FATF-compliant country and wants a demat account with an Indian broker. Until now, she could not finish digital KYC from abroad and had to arrange it another way. From 3 December 2026, the broker can accept her digital KYC submission, but it must have its authorised official present during her video verification.
What you should do
If you are a client abroad, you can now expect to complete digital KYC with a SEBI-registered broker, provided you live in a FATF-compliant country. If you run a broker or other SEBI-registered firm, update your onboarding to the new process in clause 5 of the circular before 3 December 2026. Read the full circular for the exact steps.
Deadline · December 03, 2026If you do nothing
The circular does not describe penalties in the part shown here. Brokers that do not update their process would not be able to use the new relaxed route for these clients. Read the full circular to confirm any further consequences.
The terms explained
- Video In Person Verification (VIPV)
- A live video call in which the firm checks that the person is who they claim to be. The call must be recorded and show the person's location.
- KYC Registration Agency (KRA)
- A company registered with SEBI that stores investors' KYC records so that different brokers can use the same details.
- Financial Action Task Force (FATF)
- An international body that sets anti-money-laundering standards. Countries are rated on how well they follow those standards.
- Person Resident Outside India (PROI)
- A person who is not living in India for tax and foreign exchange purposes. In this circular it covers NRIs, OCI cardholders and foreign nationals.
- officially valid document
- An identity or address document accepted by Indian rules, such as a passport, for proving who you are and where you live.
The original document
| Issued by | SEBI |
|---|---|
| Document | Circulars |
| Full title | Review of Know Your Client process for individual Person Resident Outside India clients |
| Issued on | 04 November 2026 |
| Effective | Onboarding of every individual PROI client, except clients in FATF non-compliant countries, from December 03, 2026 (30 d |
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