SEBI is on the cusp of launching a secure remote KYC facility for NRIs, eliminating the need for physical presence in India. Collaborating with UIDAI and RBI, the initiative aims to simplify market access, supported by enhanced surveillance and streamlined FPI registration, maximizing NRI investment potential in Indian markets.
In a significant development poised to ease the investment journey for Non-Resident Indians (NRIs), the Securities and Exchange Board of India (SEBI) is advancing plans to introduce a secure remote Know Your Customer (KYC) process. Currently under testing phases, this initiative aims to eliminate the need for NRIs to travel to India solely for KYC compliance, marking a major stride in digital investor facilitation.
SEBI Chairman Tuhin Kanta Pandey highlighted during the BSE Brokers Forum event that enabling remote KYC for NRIs is an urgent priority. Collaborating closely with the Unique Identification Authority of India (UIDAI) and the Reserve Bank of India (RBI), SEBI is working to create a reliable framework that allows NRIs to complete their KYC verification securely from abroad, likely involving video call-based validations.
This move will considerably boost market accessibility for the Indian diaspora, a community exceeding 3.5 crore individuals globally. With India receiving a record $135 billion in remittances in FY25, easing NRIs' entry into the capital markets could unlock significant investment potential, especially amidst a slowdown in retail investment activities.
Beyond KYC reforms, SEBI is also enhancing market surveillance by shifting from reactive to predictive oversight. Upgrades to data systems now enable early detection of fraud patterns such as pump-and-dump schemes and manipulative bulk trades. Additionally, SEBI is working on a safety net for depository participants to maintain market stability during technical outages.
SEBI's wider agenda includes accelerating the registration process for Foreign Portfolio Investors (FPIs) through simplified, portal-based applications, further broadening India’s investment appeal. Digital platforms like the Investor Risk Reduction Access Platform and Unified Investor App have also strengthened investor protection and grievance redressal.
Key Highlights:
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SEBI prioritizes remote KYC for NRIs to avoid physical presence in India.
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Collaboration with UIDAI and RBI to establish secure digital KYC frameworks under testing.
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Over 3.5 crore NRIs globally, with India’s remittances hitting $135 billion in FY25.
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Market surveillance enhanced with predictive oversight and fraud detection technology.
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Safety net mechanisms being developed for depository participants to ensure operational continuity.
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Simplification of Foreign Portfolio Investor registration via a single-window portal approach.
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Investor-centric digital platforms improving access, protection, and grievance processes.
This evolution in regulatory and technological frameworks is set to empower NRIs with seamless investment opportunities, reflecting SEBI’s commitment to investor convenience and market integrity.
Source References: Economic Times, Business Today, Mathrubhumi, Indian Express, IANS, Times of India.
