Securities and Exchange Board of India (SEBI) has moved a proposal to ease the registration process for Foreign Portfolio Investors (FPIs) by easing information required from them at the time of application. The capital markets regulator said on September 24 that it has floated a consultation paper on 'Simplified registration for Foreign Portfolio Investors (FPIs)', and has invited comments from various stakeholders and public by October 15.
"It is observed that, in case of certain categories of FPI applicants, some of the relevant information is already captured in Depositories’ CAF (Common Application Form) module, which can be leveraged without seeking the same from said applicants," said SEBI.
"Accordingly, in order to save significant time and efforts for aforementioned FPI applicants, in terms of reviewing the application and signing the CAF, it is proposed to seek only such information that is unique to the aforesaid applicants," it added.
The SEBI proposal follows the market feedback that an abridged version of the CAF (Common Application Form) could help save significant time and efforts in terms of reviewing the application and signing reduced number of pages. The abridged CAF could have only those fields which are unique to the applicants, said SEBI.
Accordingly, SEBI has decided that while onboarding applicants from certain categories listed in the paper, an abridged version of the CAF would be used. It would have only those fields that are unique to such applicants. "The remaining fields shall either be auto populated from the information available in the Depository system or shall be disabled, as applicable," said SEBI.
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