SEBI simplifies PAN application process for FPIs after onboarding concerns

New Delhi [India], May 15 (ANI): Market regulator Securities and Exchange Board of India (SEBI) has eased PAN-related compliance requirements for Foreign Portfolio Investors (FPIs) using the Common Application Form (CAF), a single form used by overseas investors for registration, opening bank and demat accounts, and obtaining PAN in India.
This move came after concerns were raised over difficulties in complying with new income-tax rules during investor onboarding.
In a press release issued on Friday, SEBI said the Central Board of Direct Taxes (CBDT) had introduced new PAN application forms in March 2026, which added several mandatory information requirements for FPIs, including taxpayer identification details and representative information.
"In view of several difficulties expressed by concerned stakeholders in furnishing such information by FPIs, SEBI actively engaged with CBDT to facilitate continued ease of allotment of PAN to FPIs," the regulator said.
Following discussions between the two regulators, CBDT issued a set of clarifications to simplify the PAN allotment process for foreign investors.
According to the clarification, the name of the authorised signatory mentioned in the Common Application Form (CAF) will be sufficient for the representative field in the PAN application process. SEBI said "no supporting documents" related to the authorised signatory would be required.
An authorized signatory is a person officially authorised by the Foreign Portfolio Investor (FPI) to sign documents and complete formalities on its behalf.
The regulator also allowed FPIs to use either the authorised signatory's contact details or the FPI's own contact details in cases where such information is unavailable.
Further easing the process, CBDT said FPIs can provide their registration number if PAN, Aadhaar or passport details of the authorised signatory are not available.
For jurisdictions where Taxpayer Identification Numbers (TINs) are not applicable, the PAN form can now be filled using the value "0000000000", according to the clarification.
SEBI also said that if a mobile number is unavailable, FPIs may provide a landline number instead in the contact details section.
"The above measures resonate with the continuous efforts towards providing ease of onboarding to FPIs," SEBI said in the release.
This clarification is significant because FPIs use a single Common Application Form (CAF) for several key requirements in India, including SEBI registration, opening bank and demat accounts, and applying for PAN. Any delays or complications in the PAN process can therefore slow down the onboarding of foreign investors. (ANI)