SEBI Proposes to Simplify Geo-Tagging for NRI Investors

The Securities and Exchange Board of India (SEBI) announced a proposal on Thursday to remove or relax the geo-tagging mandate for Non-Resident Indians (NRIs) during their digital Know Your Client (KYC) update (re-KYC) or initial verification (V-CIP).

What is the Rationale Behind This Move by SEBI?

Under the current rules, intermediaries must ensure that an NRI client’s mobile device is physically located in India, verified through geo-tagging during the KYC or re-KYC process. 

The proposal suggests relaxing this location requirement for existing NRI clients, enabling them to complete re-KYC from abroad. However, firms will still be required to capture the client’s GPS-tagged latitude and longitude matching their registered address. 

Additional safeguards for video-based client identification (V-CIP), such as random action prompts, timestamping, and anti-spoofing IP checks, will still apply. 

Industry Impact and Next Steps

The move comes after multiple stakeholder representations seeking simpler compliance for overseas investors. SEBI has invited public comments on the draft by November 13, 2025. 

If implemented, the change may enhance ease of investment for NRIs, reduce compliance friction for global-based clients, and potentially increase NRI participation, cementing in Indian capital markets.

Read More: SEBI Extends Deadline for Angel Funds to Disclose Investment Allocation Methodology!

Conclusion

By proposing these reforms, SEBI is signalling a push to align KYC norms with global digital identity practices and accommodate the growing NRI investor base, while retaining critical safeguards for fraud prevention and investor protection.

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