SEBI Digital KYC: SEBI has proposed simplifying digital KYC for NRIs, OCIs, and foreign citizens living abroad. Learn what changes will occur and who will benefit.
Digital KYC will be done from abroad only!
SEBI Digital KYC: Investing in the Indian stock market may now become easier for Indians living abroad. Market regulator SEBI has proposed simplifying the digital KYC process for non-resident Indians, non-resident citizens of India, and foreign citizens living abroad. This will eliminate the need for investors to travel to India to complete their KYC.
SEBI has issued a consultation paper stating that individuals resident outside India living in FATF-compliant countries will be allowed to complete KYC and onboarding digitally from abroad.
What are the rules now?
Currently, digital onboarding is quite difficult for customers living outside India. During digital KYC, the customer's location must be in India, and latitude and longitude are captured. Therefore, NRI investors living abroad must travel here for the physical KYC process.
What methods will be used?
SEBI has discussed several options to simplify digital KYC. These include digital signatures, DigiLocker, digital Aadhaar authentication, and video-based in-person verification. However, digital KYC does not mean that verification will be completely free of security checks. The regulator has also proposed several security measures to confirm investor identity and location.
Who will benefit?
The proposal covers NRIs, OCIs, and all foreign nationals residing outside India. However, it is specifically for those living in FATF-compliant countries.
