SEBI Revises KYC Norms for Overseas Investors; New Rules Effective December 3, 2026

The Securities and Exchange Board of India (SEBI) has changed its Know Your Customer (KYC) rules for overseas individual investors, according to news reports.  

Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals living in countries compliant with the Financial Action Task Force (FATF) can now complete digital KYC without travelling to India. 

The revised rules were announced on November 4, 2026, and will come into effect from December 3, 2026. Previously, overseas clients were required to be physically present in India to complete digital KYC. 

Intermediaries Can Use Existing KYC Records 

Under the revised rules, banks, brokers and custodians can accept KYC details and supporting documents submitted digitally by eligible overseas investors. 

Intermediaries can also use KYC records verified by another SEBI-registered intermediary or an entity regulated by another financial sector regulator. These records can be obtained through KYC Registration Agencies (KRAs) or the Central KYC Records Registry (CKYCRR). 

KRAs will mark individual details as validated when they have been checked against official databases or source records. However, the intermediary onboarding the investor will remain responsible for KYC compliance and enhanced due diligence. 

Changes to Document and Video Verification 

SEBI has also changed the requirements for document verification. Intermediaries can verify Permanent Account Number (PAN) details through the Income Tax database without asking for the original PAN card or a physical copy. Overseas addresses can be used as proof of current address. 

Where physical verification is not possible, intermediaries can conduct Video In-Person Verification (VIPV). The process must include live video recording, GPS coordinates, timestamps and facial liveness checks. Safeguards against spoofed IP addresses, VPNs and proxy servers are also required. 

Electronic documents from DigiLocker and other verifiable sources can be accepted. Documents attested by specified authorities, including Indian embassies and consulates, are also permitted. 

FPI Registration Rules Remain Unchanged 

The revised provisions will apply to re-KYC for eligible overseas investors as well. However, investors residing in FATF non-compliant countries will continue under existing requirements. 

Foreign nationals seeking registration through the Foreign Portfolio Investor (FPI) route will remain subject to SEBI's existing FPI framework. KYC completed before December 3, 2026, will also continue under the earlier rules. 

Read More: Karnataka Hikes BMTC and KSRTC Bus Fares; New Rates Effective November 4, 2026! 

Conclusion  

The revised KYC rules will come into effect on December 3, 2026, and will apply to eligible overseas individual investors. Existing FPI registration requirements will remain unchanged. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.