The Securities and Exchange Board of India has issued a consultation paper outlining proposed modifications to the verification process for individual Persons Resident Outside India. The initiative aims to streamline onboarding procedures for Non-Resident Indians, Overseas Citizens of India, and foreign nationals seeking to participate in the domestic financial market.
Key Digital Onboarding and Verification Measures
Under the released recommendations, individuals from Financial Action Task Force compliant jurisdictions would no longer need to be physically present in the country to complete verification. Instead, they can utilize digital onboarding channels. The framework incorporates specific security safeguards for Video In Person Verification, including measures to prevent spoofed IP addresses, mandate concurrent audits, and ensure adherence to cyber security standards.
Additionally, the proposals introduce mandatory collection of electronic mail addresses from these clients to streamline institutional communication. The list of authorized personnel permitted to certify documents would also widen to include officials at overseas banks maintaining business relationships with domestic banking institutions.
Regulatory Portability and Intermediary Reliance
To reduce administrative redundancy, the framework permits verification records to remain portable across multiple intermediaries within the securities market. Furthermore, market intermediaries would be authorized to rely on verification procedures previously completed by entities regulated by other financial sector authorities.
Public Consultation Timeline
- Consultation paper published on the official regulatory portal
- Public feedback invited until September 04, 2026
The regulatory authority has invited feedback from stakeholders and the general public regarding these proposed adjustments. Interested parties can review the complete documentation on the official website and submit their observations prior to the final deadline.
Primary source: This independent news summary is based on official information from Securities and Exchange Board of India. Read the original document for complete details.