Sebi cancels registrations of 8 investment advisers for non-payment of renewal fees

Sebi Relaxes KYC Norms For Foreign Investors

The Securities and Exchange Board of India has introduced a revised Know Your Customer framework covering Non-Resident Indians, Overseas Citizens of India and foreign nationals. Under the changes, these categories of investors can now complete digital onboarding from jurisdictions that are compliant with the Financial Action Task Force, the global body that sets standards on anti-money laundering and terror financing. The relaxations, which take effect from December 3, are intended to streamline the account-opening journey for a segment that has historically faced friction in meeting verification requirements.

What The Framework Allows

Intermediaries will be permitted to accept KYC submissions without insisting that the applicant be physically present in India. Where in-person verification is not workable, the revised framework allows Video In-Person Verification to be used instead. This gives regulated entities an additional compliance tool while retaining a verification step. The stated objective is to simplify onboarding while keeping the process aligned with existing compliance expectations.

Why It Matters For Businesses

For brokers, asset managers, depositories and other registered intermediaries, the change addresses a long-standing operational bottleneck. Onboarding non-resident clients previously involved documentation and verification steps that were difficult to complete remotely, which discouraged many prospective investors from FATF-compliant countries. By recognising digital channels and video-based verification, the framework reduces dependence on physical presence and could shorten turnaround times for account activation. Firms serving diaspora investors or foreign clients may see a wider addressable base, though each intermediary will need to align its internal processes with the revised requirements before the December 3 effective date.

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