Zerodha co-founder Nithin Kamath has welcomed SEBI's proposal to make it easier for non-resident Indians (NRIs) to invest in Indian markets, calling the move huge and saying it could remove one of the biggest hurdles faced by overseas investors.
In a post on Substack, Kamath said the Securities and Exchange Board of India (SEBI) has proposed a fully digital onboarding process for NRIs, which would allow them to complete the process without being physically present in India.
“I've spoken many times about the need to make it easier for NRIs to invest in India. Finally, some great news,” Kamath wrote.
He applauded SEBI for what he called a pragmatic move, saying the proposal could significantly expand the pool of NRI capital flowing into Indian markets.
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According to Kamath, NRIs are an important source of long-term capital for Indian equities. He said Zerodha currently has more than 50,000 NRI investors, with around 80% of them actively investing.
“That's a ridiculous number,” Kamath wrote, highlighting the unusually high level of engagement among the broker's NRI clientele.
He said NRIs generally invest larger amounts, take a longer-term approach and tend to remain invested for longer compared with regular investors. Kamath attributed much of the recent increase in Zerodha's NRI investor base to regulatory changes that have simplified the investment process.
Earlier SEBI changes meant NRIs no longer needed the traditional Portfolio Investment Scheme (PIS) route for several market investments.
Kamath said most NRIs now enter through NRO Non-PIS accounts, which he described as functioning almost like resident accounts. These accounts provide access to facilities such as intraday trading, BTST and futures and options, without requiring a CP code.
However, one major hurdle has remained: account onboarding. “Even today, to open an account digitally, an NRI has to be physically in India,” Kamath said.
For NRIs living abroad, he said the alternative involves extensive physical documentation and international courier services, making the process cumbersome and time-consuming.
“It has always been the most painful part of the journey,” he wrote.
Kamath said SEBI's latest consultation paper seeks to address this long-standing problem by allowing e-signatures to be completed directly from the client's country of residence.
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If the proposal is implemented, NRIs could face fewer documentation requirements and significantly shorter processing times.
“Something that would take 2-3 weeks or even months could be done within 1-2 days,” Kamath wrote.
He believes removing the onboarding friction could allow India's NRI investor base to expand substantially. Kamath also wrote that getting foreign money into India matters, arguing that easier access benefits not only NRI investors but also the rupee and India's broader investment story.
“Anything that makes it easier for this money to come into India is worth doing,” Kamath said.
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