Investing in the Indian market has become very easy! SEBI’s big step for NRIs, online KYC will be done in few minutes

The Securities and Exchange Board of India (SEBI) on Wednesday relaxed Know Your Customer (KYC) norms for persons residing outside India, including Non-Resident Indians (NRIs), Overseas Citizens of Indian Origin (OCIs) and foreign nationals. Under this they will be able to complete the registration process through digital means. Now they can complete this process without coming to India, residing in countries that follow Financial Action Task Force (FATF) norms. Sebi has said in its circular that the revised system will come into effect from December 3.

SEBI has simplified the rules

Under this arrangement, SEBI registered intermediaries will be able to accept KYC related information and related documents from such customers through digital medium. For this, it will not be necessary to be physically present in India during the registration process. The move is aimed at simplifying the registration process and simplifying compliance requirements for investors residing abroad. Sebi said it has decided to review the existing KYC provisions to simplify the registration process for a person residing outside India (PROI). Individual customers residing outside India shall include Non-Resident Indians (NRIs), Overseas Citizens of Indian Origin (OCI) or Foreign Nationals.

Instructions issued to KRA

Sebi said the requirement to be present in India during digital registration is being relaxed for individual customers residing in the country complying with Financial Action Task Force rules. Intermediaries may accept KYC related information and related documents from such customers through digital means. SEBI has also enhanced the facility of sharing KYC records from one intermediary to another. It has directed the KYC Registration Agencies (KRAs) to record the customer’s personal information as ‘verified’ wherever it has been verified from official or original data sources. KYC records can be exchanged with other intermediaries, even if not every information recorded in them is verified.

including additional checks

Further, intermediaries will be permitted to rely on the KYC process carried out by any other SEBI-registered intermediary or other entity subject to the financial sector regulator, based on the records available in the KRA or the Central KYC Records Registry (CKYCRR). However, the ultimate responsibility for compliance with KYC regulations will rest with the respective intermediary. This also includes additional due diligence based on the risk category of the customer. Under the revised rules, intermediaries will have to obtain the customer’s Permanent Account Number (PAN), passport and OCI card where applicable. Along with this, proof of identity and address will also have to be collected. In case of such customers residing outside India, the foreign address will be treated as their current address.

E-sign approved

The regulator has also allowed submission of KYC form and specimen signature through electronic means. This will depend on the prescribed verification conditions. According to SEBI, intermediaries have to provide the KYC information of such individual customers to KRA within three working days of completion of the KYC process. The revised system will also apply to the re-KYC process for customers residing in countries that adhere to FATF norms.