The Securities and Exchange Board of India (Sebi) on Friday eased onboarding norms for foreign portfolio investors (FPIs) by simplifying PAN allotment requirements, following operational challenges under the new Income-tax Rules, 2026. According to reports from The Economic Times, the regulator said the Central Board of Direct Taxes (CBDT) has issued clarifications to facilitate smoother issuance of PAN for FPIs after concerns were raised by market participants over revised PAN application forms notified in March. In a press release issued on Friday, SEBI stated that the CBDT had introduced new PAN application forms in March 2026, which added several mandatory information requirements for FPIs, including taxpayer identification details and representative information. Following discussions between the two regulators, CBDT issued a set of clarifications to simplify the PAN allotment process for foreign investors.
Under the new PAN application framework, additional fields such as taxpayer identification number (TIN), and details and documents of representative or authorised representatives were introduced, while some previously optional fields-including mobile numbers-were made mandatory, creating procedural difficulties for FPIs. As reported by The Economic Times, following discussions, CBDT has now issued a set of relaxations. The authorised signatory named in the common application form (CAF) can be treated as the authorised representative for PAN purposes without requiring separate supporting documents. According to the latest clarification, the name of the authorised signatory mentioned in the Common Application Form (CAF) will be sufficient for the representative field in the PAN application process, with no supporting documents related to the authorised signatory required.
According to Sebi's statement, the liability of the authorised signatory is solely limited to the purpose of applying for PAN. Where contact details of the authorised signatory are unavailable, FPIs can provide their own address, email and phone details in the application. In cases where PAN, Aadhaar or passport details of authorised signatory are unavailable, FPIs can furnish their FPI registration number. For jurisdictions where Taxpayer Identification Numbers (TINs) are not applicable, the PAN form can now be filled using the value '0000000000' in the relevant field. SEBI also allowed FPIs to use either the authorised signatory's contact details or the FPI's own contact details in cases where such information is unavailable, and if a mobile number is unavailable, FPIs may provide a landline number instead in the contact details section.
FPIs use a single common application form for registration with Sebi, opening bank and demat accounts, and obtaining PAN. As reported by The Economic Times, Sebi had actively engaged with CBDT to address the compliance hurdles faced by overseas investors, with the regulator stating that these measures resonate with continuous efforts towards providing ease of onboarding to FPI. This clarification is significant because FPIs use a single Common Application Form (CAF) for several key requirements in India, including SEBI registration, opening bank and demat accounts, and applying for PAN. Any delays or complications in the PAN process can therefore slow down the onboarding of foreign investors.
