In a move to align regulatory processes, India’s foreign portfolio investor onboarding system is set for changes with updates to the common application form (CAF). The revision is expected to match the new PAN application framework coming into effect from 04/01, according to sources familiar with the matter.
The update follows the notification of revised PAN application Forms 95 and 96 by the Income Tax Department under the new Income-tax Rules, 2026. These forms will replace the existing ones used by foreign investors to obtain a Permanent Account Number.
A working group under Securities and Exchange Board of India has finalised the proposed changes to the CAF. “A SEBI working group has finalised the changes to the CAF. The changes are expected to be brought in through a gazette notification soon,” a source said.
In addition to aligning with the new PAN system, the updated CAF also includes recommendations from the Custodians and DDP Standards Setting Forum (CDSSF), sources added.
The CAF acts as a single-window document for FPIs. It combines registration with SEBI, PAN allotment, and the opening of bank and demat accounts. The system was introduced to simplify market entry by bringing multiple procedures into one framework.
While the tax changes will take effect from 04/01, there is no official transition period announced for the revised CAF. “There is nothing specified in writing on a transition period, though the tax department has indicated informally that applications may be accepted in the existing format for a few days,” another source said. “The idea is to ensure a smooth shift to the new PAN system without disrupting investor onboarding,” the source added.
This development comes months after SEBI streamlined the use of digital signatures in the CAF process, part of ongoing efforts to improve compliance and efficiency for overseas investors.
The current CAF format was introduced in 2020 as part of a revamped FPI framework aimed at simplifying entry into Indian markets. Since then, incremental updates, including digitisation of signatures, have been implemented.
In the absence of formal alignment, custodians and designated depository participants handling FPI registrations may need to make short-term procedural adjustments.
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