Mumbai, Aug. 14 -- The Securities and Exchange Board of India (SEBI) has proposed allowing Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and foreign nationals living abroad to complete their KYC digitally without being physically present in India, as the regulator looks to make it easier for overseas individuals to invest in the Indian securities market.

The relaxation would be available to individual Persons Resident Outside India (PROIs) located in countries compliant with the Financial Action Task Force (FATF), according to a consultation paper released by SEBI. Existing KYC requirements would continue to apply to clients in FATF non-compliant countries.

Currently, digital onboarding of such investors is possible onl...