Business · India Bureau
SEBI digital onboarding push to streamline NRI investment process
Market regulator's proposed digital account-opening framework could significantly reduce the time required for non-resident Indians to open investment accounts, industry observers say. The move addresses a longstanding bottleneck in attracting NRI capital to Indian markets.
LSN India ·
The Securities and Exchange Board of India's initiative to enable digital onboarding for non-resident Indian investors has drawn endorsement from prominent market participants, who view it as a critical step in reducing friction in account opening processes. The proposed framework aims to compress what is currently a lengthy procedural timeline into a matter of days, potentially unlocking greater participation from the diaspora in Indian financial markets. Zerodha co-founder Nithin Kamath characterised the regulatory shift as significant, noting that streamlined digital processes could fundamentally transform NRI engagement with domestic investment platforms. Currently, account opening for non-residents involves multiple manual verification steps and documentation requirements that can extend timelines substantially. SEBI's proposed changes would leverage digital verification mechanisms to expedite the process while maintaining regulatory safeguards and compliance standards. Industry observers anticipate that faster account activation will encourage greater NRI participation in equity markets, mutual funds, and other investment products, potentially bolstering capital flows into the Indian financial system. The regulatory move aligns with broader efforts by authorities to modernise market infrastructure and attract foreign funds from Indian residents abroad.