SEBI proposes online KYC for NRIs, OCIs and overseas investors
SEBI just proposed a new way for nonresident Indians (NRIs), Overseas Citizens of India (OCIs), and foreign nationals living abroad in FATF-compliant countries to complete their KYC: fully online, no need to fly to India or mess with paperwork.
Earlier this month, the plan would let eligible overseas investors finish their onboarding digitally from their country of residence.
Experts: digital KYC enables $5,000 investments
Vikram Shah, CEO and Founder of Vested Finance, said "Digital KYC and onboarding will reduce friction for retail NRI investors who earlier shunned India investing due to logistics," since it could make investing in India possible with as little as $5,000.
CA Kinjal Shah, President, Bombay Chartered Accountants's Society (BCAS), added that paperless and video-based onboarding should speed things up but reminded everyone that proper audit trails are still important.
If these changes go through, NRI investments in India might get a boost, though things like rupee value and market trends will still matter.
SEBI released a consultation paper proposing the relaxation.