SEBI plans to amend geo-tagging condition for NRI investors
SEBI plans to amend geo-tagging condition for NRI investors
The move follows representations from stakeholders to simplify compliance norms
The Securities and Exchange Board of India (SEBI) has introduced a draft proposal to ease the geo-tagging requirement for Non-Resident Indian (NRI) clients during their re-KYC or KYC process through digital onboarding or video client identification (V-CIP).
In its circular, the market regulator has sought public comments by 13 November on its proposal to relax the condition requiring NRIs to be physically present in India during KYC verification.
The move follows numerous representations from stakeholders seeking to simplify compliance norms for overseas investors.
Currently, intermediaries are required to ensure that NRIs undergoing KYC or re-KYC are physically present in India through geo-tagging features in their digital identification applications.
However, in the new structure, intermediaries will still need to ensure that the GPS location captured during the process matches the latitude and longitude of the client's proof of address.
Meanwhile, the market watchdog has proposed that applications used for the video identification process must continue to include safeguards such as random action prompts, along with time stamping and protection against spoofed IP addresses, to ensure that interactions are not pre-recorded.
