SEBI simplifies registration process for FPIs

On 12-11-2024, the Securities and Exchange Board of India (‘SEBI’) issued a circular on Simplified Registration for Foreign Portfolio Investors (‘FPIs’) to ease onboarding for FPIs applicants and reduce duplication of available information. The provisions will come into effect after 3 months from 12-11-2024.

Key Points:

1. SEBI has permitted the applicants to fill only the fields that are unique to them.

   To avoid duplication of information, SEBI has decided to provide the applicants with an option to fill the entire Common Application Form (‘CAF’) or fill an abridged version of CAF (to fill the fields that are unique to them).

   Explicit consent of the applicant will be needed to use the available information, and confirmation will have to be obtained. , Designated Depository Participants (‘DDPs’) will update the details of CAF against the application number of the applicant for future reference purposes.

2. Custodians and Designated Depository Participants Standards Setting Forum will formulate the fields that can be auto populated from CAF module or be disabled.

3. SEBI’s master circular dated 30-5-2024, mandated FPIs, DDPs and Eligible Foreign Investors applicant to submit a duly signed CAF and ‘Annexure to CAF’ supported by required documents for registration.

4. Information regarding Investment Manager (‘IM’) and other relevant information was already capture in depositories’ CAF module in case of FPI applicants belonging to the following categories:

   • Funds operated by investing/ non-investing IM, wherein such IM/ fund operated by IM, is already registered as FPI;

   • Sub- funds of the master fund, wherein such master fund/ sub- fund of master- fund, is already registered as FPI;

   • Sub- funds/ separate classes of shares or equivalent structures with segregated portfolio of a fund, wherein such fund/ its sub- fund/ separate class of shares/ equivalent structures with segregated portfolio, is already registered as FPI;

   • Schemes/ insurance companies wherein the parent entity or any scheme of insurance company is already registered as FPI.