Sebi, CBDT ease PAN guidelines for international buyers after onboarding issues
In an announcement issued on Friday, Sebi mentioned CBDT has offered a number of clarifications to simplify the PAN allotment course of for FPIs following stakeholder suggestions on the brand new Revenue-tax Guidelines, 2026 and revised PAN software varieties notified in March this yr.
The difficulty had arisen after the up to date PAN varieties launched extra obligatory fields together with taxpayer identification quantity particulars, consultant assessee data and obligatory cellular quantity disclosure necessities.
International buyers and market intermediaries had raised issues that many of those necessities had been tough to adjust to throughout a number of jurisdictions, doubtlessly complicating the onboarding course of for FPIs investing in Indian markets.
Sebi mentioned it actively engaged with CBDT after receiving representations from stakeholders to make sure that the PAN issuance framework remained easy and investor-friendly.
Below the revised clarifications, CBDT mentioned the title of the authorised signatory talked about within the Widespread Utility Kind (CAF) can be enough for the consultant assessee or authorised consultant subject in PAN purposes.
The tax division additionally clarified that the legal responsibility of the authorised signatory would stay restricted solely to the aim of making use of for PAN and that no supporting paperwork associated to the authorised signatory or consultant assessee can be required.CBDT additional eased handle and contact-related compliance necessities. In line with the clarification, if particulars akin to cellular quantity, landline quantity or e-mail handle of the authorised signatory are unavailable, FPIs could present their very own contact data as a substitute.
In one other aid measure, CBDT mentioned that if PAN, Aadhaar or passport particulars of the authorised signatory are unavailable, the FPI registration quantity may be furnished within the software.
The tax authority additionally addressed issues round taxpayer identification numbers for jurisdictions the place such methods don’t exist.
CBDT clarified that in instances the place TIN or an equal quantity just isn’t relevant, candidates could fill the sector utilizing the worth “0000000000”. Moreover, if an FPI doesn’t have a cellular quantity, it might present a landline quantity as a substitute whereas furnishing contact particulars.
Sebi mentioned the most recent measures are geared toward guaranteeing continued ease of onboarding for international portfolio buyers.
FPIs at the moment use a single Widespread Utility Kind for a number of regulatory processes together with Sebi registration, opening financial institution and demat accounts and acquiring PAN registration in India.
