Sebi Proposes Easing Geo-Tagging for NRI KYC
Sebi proposed relaxing geo-tagging requirements for NRI clients during KYC processes. The draft suggests eliminating the need for physical presence in India. Despite the change, GPS confirmation against proof of address remains mandatory. Public comments on this proposal are sought by November 13.
- Country:
- India
The Securities and Exchange Board of India (Sebi) has unveiled a proposal aimed at easing geo-tagging obligations for non-resident Indian (NRI) clients during their re-KYC or KYC process through digital methods like video client identification (V-CIP).
In response to numerous requests from stakeholders advocating for simplified compliance standards for overseas investors, Sebi's draft circular invites public input on relaxing the rule requiring NRI clients to be physically present in India during KYC verification.
Under current regulations, intermediaries must ensure that NRI clients are physically located within India by using geo-tagging features in digital identification applications. The proposed changes would allow the clients' location to be outside India for existing NRI clients, provided that the GPS data aligns with their proof of address.
Sebi also maintains that applications for video identification should incorporate safeguards such as random action prompts, time-stamping, and protection against spoofed IP addresses to ensure authenticity.
Stakeholders are encouraged to submit their comments on this draft proposal by November 13, signaling a potential shift in regulatory practices to accommodate the growing needs of overseas investors.
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