The Securities and Exchange Board of India (SEBI), through its consultation paper dated 14 August 2026, has proposed a comprehensive framework to enable fully digital onboarding of Individual Persons Resident Outside India (PROI), including Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and eligible foreign nationals residing overseas. The proposal is aimed at addressing longstanding operational and compliance challenges faced by overseas investors while opening up greater access to India's capital markets through a streamlined and technology-driven onboarding process.
Under the proposed framework, eligible investors would be able to complete the Know Your Customer (KYC) process entirely online without the need for physical documentation or in-person verification. The framework contemplates the use of DigiLocker, digitally signed electronic documents, electronic signatures, and simplified attestation requirements to establish identity and address details. These measures are expected to significantly reduce onboarding timelines and improve the overall investor experience.
To strengthen regulatory safeguards, SEBI has proposed extending these relaxations primarily to investors residing in jurisdictions that are compliant with the standards prescribed by the Financial Action Task Force (FATF). This approach seeks to balance ease of access with robust anti-money laundering (AML) and counter-terrorism financing (CTF) requirements, ensuring that investor protection and regulatory oversight remain uncompromised.
The proposal also seeks to address practical difficulties often encountered by overseas investors, such as dependence on Indian mobile numbers, OTP-based authentication processes, and repeated submission of KYC documents across different intermediaries. By enabling digital verification and facilitating the reuse of KYC records, the framework aims to promote greater standardisation and interoperability across market participants.
If implemented, the proposed changes could significantly enhance participation from the global Indian diaspora and other eligible overseas investors by simplifying access to Indian securities markets. The initiative is aligned with SEBI's broader objective of leveraging digital technologies to improve market accessibility, operational efficiency, and ease of doing business while supporting the continued growth and internationalisation of India's financial ecosystem.
