Investing Simplified: SEBI’s New Re-KYC Rules For NRIs

For millions of Non-Resident Indians (NRIs), managing investments in the Indian stock market has often meant frequent travel. Until recently, specific digital “re-verification” steps required you to be physically present in India. If you were sitting in New York, London, or Dubai, completing a simple Re-KYC often meant waiting for your next trip home.

In a significant “Ease of Doing Business” move in December 2025, the Securities and Exchange Board of India (SEBI) issued a circular (HO/38/30/12(1)2025-MIRSD) that removes this barrier.

If you are an NRI looking to update your investment records, here is everything you need to know about the new Geo-tagging relaxations.

Contents hide

1 What is Re-KYC, and why was it a Problem?

2 The December 2025 Breakthrough: What has Changed?

3 Who Benefits from This?

4 How to Complete Your NRI Re-KYC Digitally

5 Why This Matters for the Indian Market

6 Frequently Asked Questions (FAQs)

7 Top 6 Recommended Readings

What is Re-KYC, and why was it a Problem?

KYC (Know Your Customer) is the mandatory process of verifying your identity and address. Re-KYC is the periodic update of these details.

Previously, SEBI’s digital onboarding rules required “Geo-tagging,” which meant your phone’s GPS had to show you were physically located in India during the live verification process. For NRIs living abroad, this was a massive hurdle. They were forced to either travel to India or handle physical paperwork and notarized documents sent by courier—a process that was both slow and expensive.

The December 2025 Breakthrough: What has Changed?

SEBI has officially relaxed the geo-tagging requirement for existing NRI clients. You can now complete your Re-KYC digitally from anywhere in the world.

1. No “India-Only” Restriction

Existing NRI investors no longer need to be in India to use a broker’s digital KYC app. Whether you are in Singapore or Sydney, you can fire up the app and complete your verification.

2. Smart GPS Matching

While you don’t need to be in India, the system still uses your location for security. The KYC App will now capture your GPS coordinates and automatically verify that they match the country listed on your Proof of Address (PoA).

Example: If your submitted address proof is for a house in Dubai and your GPS shows you are currently in Dubai, the system will display a “Green Signal.”

3. Protection Against “Deepfakes” and Spoofing

To ensure it’s actually you behind the screen, SEBI has mandated that apps use:

Random Action Prompts: The app might ask you to blink, turn your head, or read a random number to prove you aren’t using a pre-recorded video.
Anti-Spoofing Technology: The system is designed to detect if you are using a VPN or a “fake location” app to mask your true identity.

Who Benefits from This?

This rule is designed explicitly for Existing NRI Clients.

If you already have a Demat/Trading Account: You can use this digital relaxation for your periodic re-verification.
First-time Onboarding: Note that when opening a new account, some location-based rules may still apply depending on the intermediary’s specific tech stack. Still, the path for existing investors is now much smoother.

How to Complete Your NRI Re-KYC Digitally

Download your Broker’s App: Ensure you have the latest version from your broker (e.g., Zerodha, Groww, ICICI Direct).
Enable Location Services: Give the app permission to access your GPS.
Keep Documents Ready: Have your Passport and Proof of Overseas Address (e.g., a utility bill or bank statement) handy.
Follow the Prompts: The app will guide you through a “Live Video” process. Be prepared to follow random instructions (like “look left” or “say your name”) to verify your liveness.
Submit: Once the GPS matches your country of residence, your Re-KYC is processed instantly.

Why This Matters for the Indian Market

By removing the “physical presence” clause, SEBI is encouraging more NRI participation in India’s growth story.

Increased Inflows: Easier compliance leads to more consistent investment from the Indian diaspora.
Digital Trust: By leveraging advanced technologies such as IP verification and random prompts, SEBI demonstrates that the Indian financial ecosystem is among the most technologically advanced in the world.

Frequently Asked Questions (FAQs)

Q1: Can I use a VPN while doing my Re-KYC?

No. SEBI has specifically instructed apps to block connections from spoofed or masked IP addresses. Using a VPN will likely result in your verification being rejected.

Q2: What if my GPS location doesn’t match my address proof?

The system requires the GPS country to match the government in your Proof of Address. If you are an NRI living in the UK but currently on vacation in France, it is best to wait until you are back in the UK to complete the process.

Q3: Is this applicable to OCI (Overseas Citizen of India) cardholders too?

Yes, the relaxation generally applies to all overseas investors classified as NRIs/OCIs under FEMA guidelines and who have existing accounts in India.

Investing Simplified: SEBI’s New Re-KYC Rules for NRIs