The Securities and Exchange Board of India (SEBI) announced on Thursday that it has circulated clarifications from the Central Board of Direct Taxes (CBDT) aimed at resolving issues faced by foreign portfolio investors (FPIs) in acquiring Permanent Account Numbers (PAN) under the updated onboarding framework.
This action follows significant delays in PAN issuance that have hindered the onboarding of new FPIs in recent weeks, attributed to modifications in the common application form (CAF) and the PAN application process.
The CAF operates as a comprehensive system for FPI registration, PAN allotment, and the establishment of bank and demat accounts.
Changes instituted starting April 1 required new PAN forms, as mandated by the CBDT, to include additional disclosures such as details and documents related to representative assessees (RA) or authorized representatives (AR), along with necessary fields, including mobile numbers.
These updates led to operational challenges for FPIs and intermediaries, prompting market participants to voice concerns regarding potential tax responsibilities for custodians, banks, and brokers acting on behalf of offshore funds. Reports indicate that at least 20 newly registered FPIs are still pending PAN allotment due to these procedural bottlenecks.
“In light of numerous challenges voiced by various stakeholders regarding the provision of such information by FPIs, SEBI proactively engaged with CBDT to promote a smoother PAN allotment process for FPIs,” the regulator stated in a press release.
Following discussions between SEBI and CBDT, it has been clarified that the name of the authorized signatory (AS) included in the CAF will be sufficient in place of the RA/AR information in PAN applications. The AS’s liability will be confined to the purpose of PAN application, negating the need for additional documentation concerning the AS, RA, or AR.
CBDT has also relaxed several other requirements to make the onboarding process easier. If a mobile number, address, or email details for the authorized signatory are not available, the FPI’s corresponding information may be submitted instead. Similarly, if the PAN, Aadhaar, or passport information for the authorized signatory cannot be provided, the FPI registration number may be used.
Furthermore, if a Taxpayer Identification Number (TIN) or an equivalent is not available in a specific jurisdiction, applicants may enter “0000000000” in that field. In cases where the FPI’s mobile number is unavailable, a landline number will be acceptable.
SEBI emphasized that these measures are intended to facilitate the ongoing onboarding process for foreign investors.
Published on May 15, 2026.
