Why Nithin Kamath believes NRI investing in India has become easier than ever

Zerodha co-founder and CEO Nithin Kamath has welcomed Sebi's decision to simplify account opening for non-resident Indians (NRIs), saying the move could reduce a process that previously took weeks to just 2-3 days and encourage more overseas Indians to invest in the country's stock market.

Regulator Sebi recently finalised new rules allowing NRIs, Overseas Citizens of India (OCIs) and eligible foreign nationals to complete their Know Your Customer (KYC) process digitally from overseas. The revised framework, which takes effect on December 3, 2026, will apply to individuals living in countries compliant with Financial Action Task Force (FATF) standards.

Reacting to the announcement in a post on X, Kamath said the decision addressed one of the biggest challenges faced by overseas Indians looking to invest in Indian equities.


"In August, I'd written about Sebi's proposal to simplify account opening for NRIs. Good to see that the changes have now been finalised," Kamath said.

Under the earlier framework, investors who already had valid KYC records could open accounts digitally. However, those requiring fresh KYC while living abroad faced a lengthy process involving document attestation and physical submissions.

Kamath said such investors often had to get their documents attested by a notary or the Indian embassy, send physical copies to India through courier services and wait several weeks before their trading accounts could be activated.

The new rules remove the requirement for eligible overseas investors to be physically present in India during digital onboarding. "Something that took weeks can now be done in 2–3 days," Kamath said.

The revised process allows Sebi-registered intermediaries, including stockbrokers, to accept KYC documents electronically and conduct verification through video-based procedures, subject to prescribed safeguards.

Clients will be able to complete Video In-Person Verification (VIPV) from their country of residence, provided the process meets requirements relating to identity verification, location checks and security.

The regulator has also introduced provisions to make KYC records more easily reusable across financial intermediaries. Brokers can rely on existing KYC information held by registered KYC agencies and other eligible financial institutions, while remaining responsible for conducting appropriate due diligence.

Intermediaries must submit completed KYC information to a KYC Registration Agency within three working days of finishing the verification process. The changes will also apply to investors undertaking re-KYC while residing in FATF-compliant countries. Existing procedures will continue for individuals living in jurisdictions classified as non-compliant.

Kamath believes the relaxation could help India attract more long-term investment from its overseas population.
"I've always felt that making it easier for NRIs to invest is one of the simplest ways to attract more long-term capital into India," he said.

According to Kamath, interest in Indian investments already exists among overseas Indians, but complicated account-opening requirements have discouraged participation. "Many of them already want to invest here, but the process has been complicated," he said.

The changes could particularly benefit first-time investors who have never completed KYC in India and have been unable to visit the country for account opening. For stockbrokers, the simplified process could also reduce operational costs associated with physical documentation and manual verification while making it easier to serve overseas clients.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.