Very Soon, NRI Mutual Fund Investors may not be required to be physically present in India for re-KYC.
By Mr. S.Sridharan, Founder, https://www.walletwealth.co.in/
NRI (Non-Resident
Indian,) mutual fund investors may soon be able to complete digital KYC
(Know Your Customer) modification or re-KYC from outside India.
After
receiving multiple representations from stakeholders across the securities
market, SEBI (Securities and Exchange Board of India) has proposed an amendment
to allow NRI clients to complete KYC modification or re-KYC digitally, even
when not physically present in India.
Currently,
while processing KYC requirements for NRI Investors investing in mutual funds,
portfolio management services (PMS), alternative investment funds (AIFs), and
other market-linked products, intermediaries are required to capture a geo-tag
to verify that the client is physically present in India. This applies even
when clients undergo digital onboarding or video client identification (V-CIP).
Intermediaries
/ Mutual Fund Distributors use their own apps for this purpose, which must be
equipped with GPS-enabled geo-tagging to confirm the client’s physical presence
in India.
Under
the new proposal, SEBI plans to relax this requirement. NRIs will be allowed to
complete re-KYC or KYC modification activities from outside India, as long as
the GPS location captured during the process matches the latitude and longitude
of the country mentioned in their Proof of Address.
The
regulator has proposed the following modification to the KYC Master Circular:
“The
App shall also have features of random action initiation for client response to
establish that the interactions are not pre-recorded, along with time stamping
and geo-location tagging to ensure requirements like physical location in India
are implemented.
The
requirement of the client being physically present in India during digital
onboarding shall be relaxed for re-KYC/KYC modification for existing clients.
The
App shall ensure that the GPS location (latitude and longitude) captured by the
intermediary matches that of the country stated in the client’s Proof of
Address. The App shall also prevent connections from spoofed IP addresses.”
If
implemented, this move will significantly ease the compliance process for NRIs,
enabling them to update or modify their KYC details digitally without needing
to travel to India.
You
can share your comments by November 23, 2025. You can voice your view at this
link:
https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes
For more details and NRI Investing in India
S.Sridharan,
Founder,
https://www.walletwealth.co.in/
If you need any advice on investments, do call us at 9940116967.
Team Wallet Wealth,
AMFI Registered Mutual Fund Distributor
2nd Floor, No.8A, 2nd Main Road,
Nanganallur,
Chennai – 600 061
Ph: 044-48612114
https://www.walletwealth.co.in/
Email id: sridharan@walletwealth.co.in
You can contact Mr.S.Sridharan for all types of investments including
mutual fund investment, medical insurance, and life insurance.
Read articles written by Mr. S. Sridharan in Nanayam Vikatan, a
leading personal financial management magazine.
https://www.vikatan.com/author/855-sridharan-s
Mutual Fund investments are subject to market risks, read all
scheme related documents carefully.
