 "SEBI proposes streamlined application process for FPIs, reducing redundancy by auto-filling data to save time and effort.")
To simplify the application process for Foreign Portfolio Investors (FPIs), the Securities and Exchange Board of India (Sebi) has proposed a shortened Common Application Form (CAF). This new version will only ask for details unique to the applicant, while most other information will be auto-filled from existing records. Sebi aims to streamline the onboarding experience, especially for complex entities like multiple funds under one management, ensuring that only relevant data is collected. Applicants will need to confirm that their previously provided information remains unchanged. The public is invited to comment on this proposal until October 15.
SEBI Proposes Simplified Application Form for Foreign Portfolio Investors
The Securities and Exchange Board of India (SEBI) has recently proposed a simplified version of the Common Application Form (CAF) to make the onboarding process easier for Foreign Portfolio Investors (FPIs). This initiative comes as a measure to reduce the duplication of information required from applicants.
The proposed abridged CAF will only require details that are unique to each applicant, while other necessary information will be automatically filled in from the depository’s existing records. Additionally, if certain fields are not relevant, they will be disabled to streamline the process further. Applicants will also need to confirm that the previously submitted information remains unchanged.
In its consultation paper, SEBI noted that certain types of FPI applicants, such as multiple funds managed by an Investment Manager or sub-funds under a master fund, typically provide much of the required information via the depositories’ CAF module. Therefore, the regulator aims to leverage this existing data to ease the application burden.
This proposal is designed to save significant time and effort for these FPI applicants, ensuring that they only have to review and sign forms with unique information. SEBI is currently seeking public feedback on the proposal until October 15.
By simplifying the application process, SEBI hopes to enhance efficiency and effectiveness in onboarding foreign investments in the Indian Market.
Photo Caption: SEBI (Photo: Shutterstock)
Last Updated: Sep 24, 2024 | 5:35 PM IST
First Published: Sep 24, 2024 | 5:35 PM IST
Tags: SEBI, Foreign Portfolio Investors, Common Application Form, Investment, Financial Regulation, India News
- What is FPI registration?
FPI stands for Foreign Portfolio Investor. It is a process that allows foreign investors to invest in Indian markets through various financial instruments.
- How has Sebi simplified the registration process?
Sebi has made it easier by reducing the paperwork and steps needed for some categories of FPIs. This helps foreign investors register quickly and start investing.
- Which FPI categories are affected by this change?
The simplification mainly applies to certain categories like government or pension funds and other recognized entities that meet specific criteria.
- Why is this change important for foreign investors?
This change is important because it saves time and effort, encouraging more foreign investment in India, which can boost the economy.
- When does this new process start?
The new process is already in place, so foreign investors can start using it right away to register as FPIs.
