SEBI Proposes To Ease Geo-Tagging Requirement For NRI Clients
The move follows multiple representations from stakeholders seeking to simplify compliance norms for overseas investors.
Securities and Exchange Board of India on Thursday proposed to ease the geo-tagging requirement for non-resident Indian clients during their re-Know Your Client or KYC process through digital onboarding or video client identification.
In a draft circular, the markets watchdog has sought public comments on its proposal to relax the condition that requires non-resident Indian (NRI) clients to be physically present in India during such KYC verification.
The move follows multiple representations from stakeholders seeking to simplify compliance norms for overseas investors.
Currently, intermediaries are required to ensure that NRI clients undergoing KYC or re-KYC are physically located within India through geo-tagging features in their digital identification applications.
Under the proposed modification, SEBI has suggested that the requirement of the client's physical location being in India be relaxed for existing NRI clients 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 client's proof of address.
Sebi has also proposed that applications used for the video identification process continue to include safeguards such as random action prompts to ensure that interactions are not pre-recorded, along with time stamping and protection against spoofed IP addresses.
The SEBI said it has sought comments on the draft circular by Nov.13.
