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SEBI Simplifies PAN Application for FPIs After Onboarding Hurdles

SEBI has simplified PAN-related compliance for Foreign Portfolio Investors using the Common Application Form. This follows concerns over difficulties in complying with new income-tax rules during onboarding. CBDT issued clarifications allowing authorized signatory names and contact details to suffice for PAN applications. The move aims to ease the onboarding process for foreign investors in India.

Key Points: SEBI Eases PAN Rules for Foreign Investors

  • SEBI eases PAN rules for FPIs after onboarding concerns
  • CBDT simplifies PAN form requirements
  • Authorized signatory name sufficient for representative field
  • FPIs can use registration number if PAN/Aadhaar/passport unavailable
2 min read

SEBI simplifies PAN application process for FPIs after onboarding concerns

SEBI simplifies PAN application for FPIs using Common Application Form, after concerns over new income-tax rules. CBDT issues clarifications for easier onboarding.

"The above measures resonate with the continuous efforts towards providing ease of onboarding to FPIs. - SEBI"

New Delhi, May 15

Market regulator Securities and Exchange Board of India has eased PAN-related compliance requirements for Foreign Portfolio Investors using the Common Application Form, 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

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Reader Comments

S
Sneha F
Finally some common sense! The old rules were asking for too much paperwork from FPIs. Allowing "0000000000" for TIN when it's not applicable is a small but sensible fix. Hope this doesn't create any loopholes though—we need transparency, not shortcuts that could be misused.
R
Rohit L
As someone working in financial services, this is a huge relief. The Common Application Form is the backbone of FPI onboarding, and any delay there means days or weeks of lost opportunities. The authorized signatory relaxation is particularly smart—why complicate things when the CAF already has that info? 🔥
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Priya S
Good intentions for sure, but I hope SEBI also tightens the monitoring after onboarding. Easy entry should not mean easy misuse. India needs foreign capital, yes, but we've seen troubles before when regulations are too loose. Balance is key, nah? 🤔
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Nikhil C
Smart move by the regulators! The earlier confusion with the March 2026 form changes was creating a bottleneck. Allowing landline numbers when mobile isn't available is a thoughtful touch—not every jurisdiction has the same infrastructure. This is how you attract global investment. 🚀
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Varun X
While this is positive, I'm cautious. Every time we ease regulations for FPIs, we need to ensure local investors aren't disadvantaged. But yes, for now, this seems like a practical step to remove unnecessary friction. The devil will be in the implementation though.

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