Summary: SEBI, through Press Release No. 46/2026 dated August 14, 2026, announced proposals to simplify Know Your Client (KYC) norms for individual Persons Resident Outside India (PROIs), comprising Non-Resident Indians, Overseas Citizens of India and foreign nationals. The proposals seek to facilitate digital onboarding without physical presence in India for PROI clients from FATF-compliant countries and include reliance on KYC undertaken by entities regulated by other Financial Sector Regulators, mandatory collection of email IDs, expansion of authorised officials eligible to certify documents, portability of KYC records across securities-market intermediaries, and safeguards for Video In Person Verification (VIPV), including spoofed IP prevention, concurrent audit and cyber security compliance. The consultation paper reviews the existing KYC framework and proposes easing the onboarding process for PROI clients located outside India. SEBI noted that the consultation paper is available on its website for public comments, with the last date for submission fixed as September 04, 2026. The proposals follow stakeholder representations seeking relaxation in KYC requirements. Related TaxGuru coverage includes SEBI Proposes Simplified Digital KYC for PROIs Outside India and SEBI Updates KYC Guidelines for NRIs: No Physical Presence Needed.
Securities and Exchange Board of India
Press Releases No. 46/2026
Relaxations in Know Your Client (KYC) norms for individual Persons Resident Outside India (i.e. Non-Resident Indians, Overseas Citizens of India and foreign nationals)
- Simplified KYC through digital onboarding
- No requirement of physical presence in India
- One KYC for multiple intermediaries
In order to ease the process of on-boarding for individual PROI clients, SEBI has released a consultation paper proposing relaxations in their KYC norms.
KEY PROPOSALS INCLUDE:
a) Eliminate the requirement of physical presence in India for PROI clients from FATF-compliant countries, to complete their KYC through digital mode;
b) Allow intermediaries to rely on KYC undertaken by entities regulated by other Financial Sector Regulators.
c) Mandate collection of email ID from PROI clients to facilitate communication with intermediaries.
d) Expand the list of authorised officials who can certify documents to include officials of overseas banks having relationships with Indian banks.
e) Permit PROI client’s KYC records to be portable across intermediaries in securities market.
f) Specify safeguards for Video In Person Verification (VIPV) including spoofed IP prevention, concurrent audit, and cyber security compliance.
A consultation paper elaborating the proposals has been uploaded on the SEBI website for seeking inputs from the public. The same may be accessed through the following link: https://www.sebi.gov.in/reports-and-statistics/reports/aug- 2026/consultation-paper-on-review-of-know-your-client-process-for-individual- persons-resident-outside-india_103653.html
The last date for submission of public comments is September 04, 2026.
Mumbai
August 14, 2026
