Sebi's Digital Push For NRI Investors: Nithin Kamath Reacts

Zerodha founder and CEO Nithin Kamath has welcomed the Securities and Exchange Board of India’s (Sebi) proposal to simplify how Non-Resident Indians (NRIs) invest in Indian markets. The proposal would allow NRIs to complete the account-opening process digitally from their country of residence, eliminating the need to travel to India for physical verification and paperwork. Kamath described the move as an important step towards reducing one of the biggest barriers faced by Indians living abroad who want to invest in the country.

Kamath said he had repeatedly highlighted the difficulties NRIs face while opening investment accounts in India. Although regulatory changes have already made certain investment routes simpler, the onboarding process has continued to involve physical documentation and, in many cases, a visit to India. For NRIs living overseas, sending documents through international courier services can add both time and expense to the process. Kamath said removing these hurdles could make Indian markets significantly more accessible to this investor group.

Under Sebi’s proposed framework, NRIs could use electronic signatures while completing the account-opening process from their country of residence. This would reduce dependence on physical paperwork and international courier services. Kamath said a process that can currently take several weeks or even months could potentially be completed within one or two days if the proposed system is implemented. He described the proposal as a pragmatic move that could significantly improve the experience for NRI investors.

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The Zerodha CEO also highlighted the potential scale of NRI investments. According to Kamath, NRIs often have substantial capital available for investment and can represent a relatively durable source of inflows into Indian markets. He argued that removing administrative friction could encourage many more Indians living overseas to participate in domestic equities and other financial products. A simpler onboarding process could therefore expand the pool of NRI investors and increase the flow of overseas capital into Indian financial markets.

Kamath also pointed to potential benefits beyond individual investors. He said attracting more foreign money into Indian markets could support the rupee and contribute to the broader investment narrative around the Indian economy. Previous regulatory changes have already allowed many NRIs to use NRO Non-PIS accounts, providing access to products and activities such as intraday trading, BTST and futures and options without the earlier PIS-related requirements. However, Kamath believes onboarding remains a major source of friction.

The Sebi proposal is currently at the consultation stage and could undergo changes before any final rules are introduced. If approved, the digital onboarding framework could make it substantially easier for NRIs to begin investing in Indian markets without travelling to the country. The move has received strong support from Kamath, who believes reducing paperwork and physical requirements could unlock a much larger base of NRI capital and make investing in India more convenient.

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