Market regulator simplifies digital onboarding rules for foreign and non-resident investors

The Securities and Exchange Board of India has announced relaxed know-your-customer requirements for Non-Resident Indians, Overseas Citizens of India, and foreign nationals. These operational adjustments allow affected clients to complete digital onboarding from Financial Action Task Force-compliant countries effectively. Intermediaries are now authorized to accept document submissions without requiring the physical presence of the investor in India. Under the revised operating framework, video in-person verification is formally permitted when physical verification is not feasible, thereby enhancing overall compliance capabilities for regulated entities.

The updated guidelines are designed to simplify the entire client onboarding process for cross-border participants. Previously, intermediaries faced stringent physical verification hurdles that slowed down account opening timelines for overseas clients. Compliance professionals and market intermediaries should immediately review their internal digital onboarding systems to incorporate the video verification provisions. Entities must ensure operational readiness for the revised framework which becomes effective from December 3.

Bottom line: adopting these digital-first verification channels will reduce client acquisition friction and operational overheads for cross-border financial services.