The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a simplified registration process for Foreign Portfolio Investors (FPIs). The new framework aims to reduce the time and effort required for FPI applicants by leveraging existing data already captured in the Depositories’ Common Application Form (CAF) module. This move is expected to streamline the registration process for specific categories of FPIs, such as Investment Managers (IMs) with multiple funds, sub-funds of master funds, and insurance schemes already registered as FPIs.
Under the proposed framework, these applicants will fill out an abridged version of the CAF, capturing only the unique fields relevant to them. Information already stored in the depository system will either be auto-populated or disabled, reducing duplication of effort. Applicants will also be required to provide explicit consent for using this pre-existing information.
SEBI is seeking public comments on the draft circular by October 15, 2024, which can be submitted through the SEBI website. The new process is expected to be implemented by 2025, once Custodians and Designated Depository Participants (DDPs) update their systems accordingly.
The initiative is part of SEBI’s broader efforts to make the FPI registration process more efficient while maintaining market transparency and regulatory oversight.
