SEBI integrates digital signature application feature in FPI onboarding form

SEBI integrates digital signature application feature in FPI onboarding form

Market regulator Securities and Exchange Board of India (SEBI) has further digitised the foreign portfolio investor (FPI) onboarding process by enabling an integrated Digital Signature Certificate (DSC) functionality within the Common Application Form (CAF) portal. Regulator announced in a press release issued on Thursday.

Under the new functionality, FPIs can now apply for a DSC from Indian certifying authorities directly while submitting their FPI registration application on the CAF portal. The move integrates the DSC application and FPI registration into a single, end-to-end digital process, significantly easing procedural requirements for overseas investors.

SEBI press statement stated, “This step now further streamlines the FPI registration process as applicants can now directly apply for DSC while submitting CAF in the Portal. Detailed process flows and FAQs related to obtaining a DSC are available here on the India Market Access Portal”.

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SEBI had earlier, through a circular dated March 27, 2023, permitted FPIs to use digital signatures for execution of the CAF and other registration-related documents. However, applicants were required to independently obtain a digital signature certificate before initiating the registration process. The latest enhancement removes this additional step, allowing digital signature issuance to be embedded within the flow of the application form itself.

The change is expected to reduce onboarding timelines and operational friction, particularly for first-time FPI applicants. The integration of DSC issuance into the CAF portal addresses a long-standing operational gap and is expected to make the registration process more efficient.

The guidance outlines the steps involved in applying for a DSC, documentation requirements, and technical aspects of using the digital signature within the CAF system.

The development is in line with SEBI’s broader push towards ease of doing business and increased use of technology in regulatory processes. Over the past few years, the regulator has undertaken several measures to simplify FPI compliance requirements.

FPIs have been encouraged to make optimal use of the enhanced digital functionality, as it is expected to lead to faster processing of applications and a smoother overall registration experience. The move is also seen as part of India’s ongoing efforts to improve market access and maintain its attractiveness as an investment destination for global investors.

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