Streamlining Foreign Portfolio Investor Onboarding with SEBI's New Framework

SEBI introduces an option for Foreign Portfolio Investors to use either a full or abridged Common Application Form (CAF) to simplify registration. The abridged version minimizes redundancy by using existing depository data and will become effective three months after issuance.

The Securities and Exchange Board of India (SEBI) has rolled out a new framework aimed at simplifying the registration process for Foreign Portfolio Investors (FPIs). Investors can now choose between completing a full Common Application Form (CAF) or an abridged version consisting of unique fields.

If the abridged CAF is selected, the remaining fields will either be auto-filled with information from the depository system or disabled, according to a recent circular by SEBI. Applicants must consent to the use of pre-filled information, confirming its accuracy, save for any necessary updates.

This initiative, set to take effect in three months, allows certain categories of FPIs—like funds under an Investment Manager or sub-funds of master funds—to submit only essential information, thereby eliminating redundancies. SEBI has tasked Designated Depository Participants with ensuring the accuracy of all auto-populated fields as part of this streamlined process.

(With inputs from agencies.)