New Delhi, Aug. 20 -- The Securities and Exchange Board of India (Sebi) has proposed changes to digital Know Your Customer (KYC) rules for Persons Resident Outside India (PROIs), including Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and eligible foreign nationals, in a move that could remove a key hurdle in investing in India from overseas.

The regulator's consultation paper, issued on 14 August, seeks to eliminate the requirement for overseas investors to be physically present in India during digital onboarding. If implemented, investors in FATF-compliant countries such as the US, UK, Japan, Canada, Germany and Australia could complete the entire KYC process remotely through web apps, video in-person verification (VIP...