Market regulator Sebi simplifies process for registration of certain FPIs

Abridged version of application form to be available in the next three months

The Securities and Exchange Board of India (Sebi) on Tuesday announced simplification of the registration process for foreign portfolio investors (FPIs) through an abridged version of the application form for registration with certain fields auto-populated for several categories of FPIs.

 

The new version will be implemented after three months. It will be after the pilot Custodians and Designated Depository Participants Standards Setting Forum (CDSSF) issues the implementation standards in consultation with Sebi.

 

The simpler form is to ease the burden on custodians / applicants and facilitate faster processing.

 

FPIs will be given an option to either choose the current process or the abridged version of the common application form (CAF). In this version, the entity applying will only have to fill the fields relevant to them.

 

However, this will be available to only certain categories of FPIs such as those funds operated by investment managers which are already registered as FPIs.

 

It will also be available to several sub-funds, other classes of shares or equivalent structures with segregated portfolios and schemes of insurance companies where the parent is already registered as FPI, among others. 

 

The simpler form will auto-populate or keep those fields disabled which are exclusive to individual FPI applicants.

 

“DDPs (designated depository participants), upon receipt of information from the applicant, shall update the details in CAF against the application number of the applicant for future reference purposes. They shall also ensure that the CAF module hosted on the website of the depository reflects complete information (information filled in by applicant and auto-populated) and facilitates seamless fetching of the same,” said Sebi in a circular issued on Tuesday.