Citigroup has launched eFPI @ Citi, a digital onboarding platform that aims to complete eligible FPI registration in India in five business days, marking a significant milestone in streamlining the country's foreign portfolio investor onboarding process. According to The Hindu BusinessLine, the platform is designed to simplify documentation and reduce the time taken to bring overseas investors into the Indian capital markets. The initiative was announced at the Global Fintech Fest in Mumbai and represents part of a broader move towards technology-led FPI onboarding and faster access to India's capital markets. The development comes amid the Securities and Exchange Board of India's (SEBI) push to speed up and streamline FPI registration, with regulators and market intermediaries stepping up efforts to digitise the onboarding process.
Citi's eFPI initiative has been rolled out in phases, with the first phase now live covering regulated public funds including mutual funds and unit trusts from the US, Ireland, and Luxembourg. As reported by The Hindu BusinessLine, the second phase will extend to Singapore, Canada, Australia, and the UK. Citi's India securities services business has a significant share of the FPI assets under custody in the country, meaning the bank's platform will cover a substantial base of foreign investors seeking to enter the Indian market. Two more DDPs are in discussion to roll out comparable fast-track onboarding frameworks, indicating growing industry adoption of the accelerated registration process. The move is expected to make it easier for overseas funds to access Indian equities and other capital-market instruments by reducing the administrative time involved in registration.
The existing FPI registration process involves online registration through the National Securities Depository Ltd (NSDL) platform, authorisation by a DDP, submission of signed hard copies of the CAF, and a subsequent PAN application to the income tax department. According to Business Standard, FPIs must also open securities and cash accounts, complete demat and KYC formalities, and secure a unique client code before becoming trade-ready. Sebi has been engaging with custodians to identify bottlenecks in this comprehensive registration process.
The development comes against the backdrop of FPIs liquidating their Indian assets, making faster registration particularly relevant for attracting global capital. As reported by Business Standard, faster registration is seen as one lever to make India more attractive for global investors at a time when several jurisdictions are competing for the same pool of capital. With more custodians preparing similar fast-track frameworks, the five-day onboarding timeline could soon move from an isolated initiative to a broader industry standard. The move is expected to make it easier for overseas funds to access Indian equities and other capital-market instruments by reducing the administrative time involved in registration.
