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Sebi simplifies FPIs onboarding process. Check latest rules


In order to make doing business easier, market regulator SEBI has simplified the procedure for incorporating foreign portfolio investors (FPIs).

On the basis of an application form and scanned copies of supporting documents, SEBI has granted Designated Depository Participants (DDPs) permission to grant FPI registration. Additionally, the Securities and Exchange Board of India has made it possible for DDPs to accept FPIs using digital signatures to sign registration documents.

The registration process will be sped up as a result of this move.

To obtain FPI registration, applicants must currently send scanned copies of their application forms to the DDP along with physical documents and supporting documents.

It should be noted that while scanned copies are accepted for registration, physical documents must be verified before the company can be activated.

In addition, the regulator has permitted DDPs to verify their PAN through the Common Application Form (CAF) module, which can be found on depositories’ websites. At the moment, DDPs can only verify PAN if they receive a hard copy from the applicant.

To diminish the time taken for actual development of archives and enlistment, SEBI has allowed approved bank authorities to involve Quick instrument for verification of duplicates of unique records presented by FPIs according to the roundabout.

According to Sebi, these measures aim to speed up FPIs’ onboarding, expedite registration, and shorten the time it takes to open demat, trading, and bank accounts.

SEBI stated that an FPI applicant who is a member of an existing FPI investor group may submit his unique FPI investor group ID to the CAF instead of providing complete information about all group members for operational convenience.

The FPI must provide the details of any additional FPI in addition to the Investor Group ID if the applicant wishes to include additional FPIs (other than itself) in that particular Investor Group ID.

At the time of registration, an FPI applicant is required to provide information about FPIs with which it shares ownership or common control of more than 50%. To identify each FPI Investor Group, depositories generate a unique FPI Investor Group ID.

The most recent circular issued by SEBI will take effect right away.

Sebi issued stricter guidelines for FPIs earlier this month, requiring them to report any significant changes in their composition and common ownership within seven working days. The regulator may request any additional documentation in relation to a new FPI registration.


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