SEBI simplifies onboarding process for Foreign Portfolio Investors

Circular No. SEBI/HO/AFD/P/CIR/2023/043, dated: 27.03.2023

Earlier, the SEBI vide circular no. SEBI/HO/AFD-2/CIR/P/2022/175, Dated December 19, 2022 had issued a Master Circular for ‘Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors’.

Now, the SEBI has modified the norms regarding the onboarding process for Foreign Portfolio Investors (FPIs) to simplify the process and reduce the time taken for granting registration and opening of demat, trading and bank accounts.

FPIs can now use digital signatures for the purpose of execution of the Common Application Form (CAF) and other registration-related documents.

Also, certified copies of original documents by authorized bank officials through SWIFT mechanism may now be accepted by DDPs/ Custodians for the purpose of verification of documents.

For operational convenience, the SEBI has specified that in case an FPI applicant belonging to an existing FPI investor group may submit its unique FPI investor group ID in the CAF, instead of providing complete details of all group constituents. In case, the applicant wants to club additional FPIs in the unique investor group ID, the FPI may only provide details of such additional FPIs, along with the investor group ID.

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