NRIs, OCIs and foreigners can complete securities KYC digitally from FATF-compliant countries from 3 December 2026
TaxByKK · Compliance News · taxbykk.com4 Nov 2026
In short
SEBI has relaxed the rule that a client must be physically in India during digital KYC, for individual Persons Resident Outside India (NRIs, OCIs and foreign nationals) located in FATF-compliant countries. Intermediaries may accept their KYC details and documents digitally. The circular of 4 November 2026 takes effect on 3 December 2026.
- Authority
- SEBI, Market Intermediaries Regulation and Supervision Department
- Circular
- HO/38/30/12(3)2026-MIRSD-POD2/I/25175/2026 dated 4 November 2026
- Type
- Circular
- Effective from
- 3 December 2026 (30 days from issue)
- Applies to
- Individual PROI clients: NRIs, OCI cardholders and foreign nationals, except clients in FATF non-compliant countries
- Addressed to
- SEBI-registered intermediaries, stock exchanges, clearing corporations and depositories
What changed
| Item | Before | Now |
|---|---|---|
| Client location during digital KYC | Client had to be in India | Relaxed for individual PROI clients in FATF-compliant countries |
| KYC records from the KRA | — | Every attribute is tagged 'validated' if verified against an official source; all records are portable, whether or not every attribute is validated |
| Reliance on third-party KYC | — | Allowed on KYC by another SEBI intermediary (via the KRA) or an entity of another financial sector regulator (via CKYCRR); the intermediary remains responsible |
| Video In Person Verification | — | An authorised official of the intermediary must be present and the process is under concurrent audit |
| Update to the KRA | — | Within 3 working days of completing KYC |
For clients in FATF non-compliant countries the existing KYC process continues, and KYC done before 3 December 2026 stays under the earlier provisions. The circular supersedes parts of the KYC Master Circular of 12 October 2023, the circular of 22 August 2011 on account opening, and the circular of 10 December 2025 on geo-tagging relaxation for NRIs doing re-KYC. Foreign nationals seeking FPI registration follow the FPI Master Circular of 30 May 2024.
Who it applies to
- NRIs, OCI cardholders and foreign nationals opening trading, demat or other securities accounts
- Stock brokers, depository participants and other SEBI intermediaries
- KYC Registration Agencies
- CAs, company secretaries and lawyers handling NRI onboarding
What to do
- Collect the PAN (verified with the Income Tax database) and CKYC ID, then fetch records from the KRA and CKYCRR before asking for more.
- Collect a passport copy (and OCI card where applicable), the CKYCRR individual KYC form with electronic or wet signature, an overseas current address, and a mobile number and email.
- Carry out in-person verification, or VIPV with consent recording, random-action liveness checks, geo-tagged video and an IP address from India or a FATF-compliant country matching the stated country.
- See and verify originals, or use the alternatives the circular lists (DigiLocker, issuer e-document, Aadhaar e-KYC, or attestation by a listed certifying authority).
- Take documents in English, translated and attested where needed, and send KYC data to the KRA within 3 working days.
Reference
SEBI circular HO/38/30/12(3)2026-MIRSD-POD2/I/25175/2026, 4 November 2026, Review of Know Your Client process for individual Person Resident Outside India clients; issued under section 11(1) of the SEBI Act, 1992.
Read the official PDF: SEBI circularWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
Can an NRI now complete securities KYC digitally from abroad?
Yes, if located in a FATF-compliant country, from 3 December 2026, subject to the VIPV and other safeguards in the circular.
Does it cover foreign nationals and OCIs?
Yes. Individual PROI clients include NRIs, OCI cardholders and foreign nationals.
What about clients in FATF non-compliant countries?
The existing KYC process continues for them.
What documents are needed?
PAN, passport (and OCI card if relevant), the KYC form, specimen signature, proof of identity and an overseas address, mobile number and email, as detailed in the circular.