In a draft circular, the market watchdog has sought public comments on its proposal to relax the condition requiring non-resident Indian (NRI) customers to be physically present in India during such KYC verification.
This move follows multiple representations from stakeholders seeking to simplify compliance standards for foreign investors.
Currently, intermediaries are required to ensure that NRI customers undergoing KYC (Know Your Client) or re-KYC are physically located in India through geo-tagging features in their digital identification applications.
Under the proposed amendment, Sebi has proposed to relax the requirement that the customer’s physical location be in India for existing NRI customers during re-KYC or KYC modification.
However, intermediaries will still need to ensure that the GPS location captured during the process matches the latitude and longitude of the customer’s proof of address. Sebi has also proposed that applications used for the video identification process continue to provide safeguards such as random action prompts to ensure interactions are not pre-recorded, along with timestamps and protection against spoofed IP addresses.
The Securities and Exchange Board of India (Sebi) said it has sought comments on the draft circular by November 13.
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