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SEBI has reportedly extended the exemption given to NRIs with KYC ‘Registered’ status from undergoing re-KYC when investing in a new fund house, until April 30, 2026, according to two sources. Such an exemption was given till April 30, 2025.
With this extension, NRIs holding a KYC ‘Registered’ status will be treated as having a KYC ‘Validated’ status until April 30, 2026.
Last year, KYC Registration Agencies (KRAs) revalidated the KYC status of all mutual fund clients, including NRIs. NRIs whose KYC was marked ‘On Hold’ due to non-validation of both email ID and mobile number, or due to an inoperative PAN (linked to the Aadhaar-PAN issue), were assigned a KYC ‘Registered’ status.
However, to attain the ‘Registered’ status, either the email ID or mobile number must be validated.
While NRIs are exempt from obtaining Aadhaar, Aadhaar linkage is required for those investing in capital market products such as mutual funds, PMS, AIFs, or direct stocks.
NRIs will continue to have an ‘On Hold’ status if either their email ID or mobile number is not validated. Even if they provide a foreign phone number, an unvalidated or invalid email ID will still keep their KYC status ‘On Hold’. NRIs with an ‘On Hold’ KYC status must complete re-KYC to execute financial or non-financial transactions in mutual funds and other capital market instruments.
For new NRI investors, obtaining Aadhaar and linking it to an Indian mobile number is necessary to complete online KYC.
NRIs who do not have Aadhaar can still complete physical KYC through in-person verification in India.
NRIs account for approximately 4% of the total mutual fund AUM. As of May 2025, NRIs contributed an AUM of 2.65 lakh crore.
