SEBI vide its circular dated 27th March 2023 issuedfor All Foreign Portfolio Investors (“FPIs”) through their Designated Depository Participants (“DDPs”), All Designated Depository Participants (“DDPs”) and Custodians, and The Depositories (NSDL and CDSL).
The circular states:
SEBI has simplified the procedural requirements for onboarding of Foreign Portfolio Investors (FPIs).
SEBI has allowed designated depository participants (DDPs) to grant FPI registrations on the basis of scanned copies of the application forms and supporting documents. FBI applicants are required to send both scanned copies as well as physical documents of applicants forms and supporting documents to the DDPs for obtaining the FPI registration. For granting of registration on the basis of scanned copies has been allowed but trading can be activated following the verification of the physical documents.
SEBI has allowed DDPs to accept the use of digital signature by FPIs for the execution of CAF and other registration-related documents.
SEBI has allowed authorized bank official to use SWIFT mechanism for certificate of copies of original documents submitted by FPIs.
SEBI has permitted verification of PAN by DDPs through the Common Application Form (CAF) module available on the website of the depositories. DDPs can verify the PAN only after receiving a hard copy of the PAN from the applicant.
For operational convenience, it is now specified that in case an FPI applicant belongs to an existing FPI investor group, it may submit its unique FPI investor group ID in the CAF, in lieu of providing complete details of all group constituents. In case the applicant wants to club additional FPIs (apart from itself) in such unique investor group ID, the FPI only needs to provide details of such additional FPI, along with the investor group ID,
Presently, an FPI applicant, at the time of registration, is required to provide details of FPIs with whom it share ownership of more than 50 percent or common control. Depositories in turn generate a unique FPI investor group ID for identifying each such FPI investors group.
This circular shall come into force with effect from 27th March, 2023.
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