Sebi and CBDT Simplify PAN Process for Foreign Portfolio Investors

The market regulator Sebi announced that the CBDT has clarified issues faced by Foreign Portfolio Investors (FPIs) in acquiring Permanent Account Numbers (PAN). The updates, intended to ease onboarding for FPIs, involve simplifications in the application process, including the elimination of certain documentation requirements.

The Securities and Exchange Board of India (Sebi) on Friday revealed that the Central Board of Direct Taxes (CBDT) has issued crucial clarifications to aid Foreign Portfolio Investors (FPIs) in securing a Permanent Account Number (PAN). This initiative seeks to streamline the onboarding of overseas investors.

The clarifications arose following discussions between Sebi and CBDT, addressing the challenges posed by the newly notified PAN application forms under the Income-tax Rules, 2026. CBDT's March 20 notification introduced additional data fields such as Taxpayer Identification Number (TIN), along with mandatory fields like mobile numbers.

In response, CBDT has stated the name of the authorised signatory on the Common Application Form (CAF) suffices for the Representative Assessee fields, without needing supplementary documents. This move reflects ongoing efforts to simplify FAIs' access to PAN, allowing for alternative contact details and flexibility in furnishing identification numbers.