Finally, some great news: Zerodha's Nithin Kamath welcomes Sebi's NRI investment push

Sebi has proposed allowing NRIs to complete the account opening process digitally from their country of residence, without having to be physically present in India.Kamath said the proposal could make investing in India much simpler for NRIs and encourage more foreign money to flow into Indian markets.The Securities and Exchange Board of India (Sebi) is looking to make it easier for Non-Resident Indians (NRIs) to invest in Indian markets. Zerodha founder and CEO Nithin Kamath has welcomed the move, saying a fully digital onboarding process could remove one of the biggest hurdles faced by NRI investors.Sebi has proposed allowing NRIs to complete the account opening process digitally from their country of residence, without having to be physically present in India.Kamath said the proposal could make investing in India much simpler for NRIs and encourage more foreign money to flow into Indian markets.KAMATH HAILS SEBI MOVEKamath said he had spoken several times about the need to make investing in India easier for NRIs. “I've spoken many times about the need to make it easier for NRIs to invest in India. Finally, some great news,” he said in a post on X.He praised Sebi for what he called a “pragmatic move” and said the proposal could be significant because NRIs can bring substantial and long-term capital into Indian markets. “NRIs tend to have large amounts of capital to invest and are a highly durable source of inflows into Indian markets,” Kamath said.ONBOARDING REMAINS A MAJOR HURDLE While several earlier changes have made it easier for NRIs to invest, Kamath said the account-opening process is still a major problem.Sebi's earlier changes meant NRIs no longer needed the full Portfolio Investment Scheme (PIS) setup to invest in Indian markets. Many NRIs now use NRO Non-PIS accounts, which offer several features similar to resident accounts.These accounts allow activities such as intraday trading, BTST and futures and options (F&O), without the need for a CP code.However, the onboarding process has remained largely physical. “Even today, to open an account digitally, an NRI has to be physically in India,” Kamath said.For NRIs living abroad, he said the process involves a significant amount of physical paperwork and can also involve delays because documents have to be sent through international couriers.“It has always been the most painful part of the journey,” he said.WHAT SEBI IS PROPOSINGThe new consultation paper proposes allowing NRIs to use electronic signatures from their country of residence.If the proposal is finalised, NRIs could complete much of the account-opening process without travelling to India or relying heavily on physical paperwork.Kamath believes this could significantly reduce the time required to open an investment account.“Something that would take 2-3 weeks or even months could be done within 1-2 days. That's a big win,” he said.The proposed changes could therefore make the process faster, more convenient and less dependent on paperwork and international courier services.WHY NRI INVESTMENTS MATTER FOR INDIAKamath believes reducing these hurdles could help India's markets attract a much larger pool of NRI capital.“By removing all this friction, this investor base can easily be many times larger,” he said.He also pointed to the wider benefit for the Indian economy, saying foreign money flowing into Indian markets can support the rupee and strengthen the broader India investment story.“Getting foreign money into India matters. It helps the investors, but it also helps the rupee and the larger India story,” Kamath said.The SEBI proposal is still at the consultation stage, so the final rules could change. But if the proposed digital onboarding system is approved, it could remove one of the biggest practical hurdles for Indians living abroad who want to invest in the country's markets.- EndsPublished By: Jasmine anandPublished On: Aug 19, 2026 11:18 IST