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India Revamps FPI Onboarding for Smoother Market Entry
29 Mar
Summary
- India's FPI onboarding form to change by April 1.
- Changes align with new PAN application rules for foreign investors.
- Revised form integrates SEBI registration, PAN, and bank accounts.
India's framework for onboarding foreign portfolio investors (FPIs) is undergoing a significant revision, with changes to the common application form (CAF) anticipated by April 1, 2026. These updates are driven by the introduction of a new PAN application regime for foreign investors, necessitating revisions to Forms 95 and 96.
The revised CAF aims to streamline the market entry process for FPIs by consolidating SEBI registration, PAN allotment, and the opening of bank and demat accounts into a single-window document. These changes also incorporate feedback from the Custodians and DDP Standards Setting Forum (CDSSF).
While the new tax rules take effect from April 1, 2026, a formal transition window for the revised CAF has not been specified. Informally, the tax department may accept existing formats for a short period to ensure a seamless transition and avoid disrupting investor onboarding.
This development follows SEBI's recent efforts to ease compliance for overseas investors, including streamlining digital signatures in the CAF process. The current CAF format, introduced in 2020, has seen incremental improvements to enhance operational efficiency.
