India’s markets regulator has relaxed know-your-client requirements for overseas individual investors, allowing those from jurisdictions that are Financial Action Task Force compliant to complete digital onboarding without being physically present in India.
The Securities and Exchange Board of India said on Wednesday that the revised rules, which will take effect from December 3, apply to non-resident Indians and foreign nationals.
Here are the key changes:
• Custodian banks and brokers can accept digital submission of KYC information and supporting documents from eligible overseas clients.
• Banks and brokers would be able to rely on KYC undertaken by another SEBI-registered intermediary or an entity regulated by other financial-sector regulators based on records in the central registry.
• Where physical in-person verification is not feasible, intermediaries can conduct video-based verification.
• The revised framework will also apply to re-KYC of eligible overseas individual clients.
• However, foreign nationals who seek an India investing license under the foreign portfolio investor route will continue to be governed by SEBI’s FPI framework.