SEBI Floats Consultation Paper To Simplify FPI Registration

The Securities and Exchange Board of India floated a consultation paper on Tuesday as it seeks to simplify the registration of foreign portfolio investors.

Currently, FPI applicants are required to submit a common application form along with the required documents for registration.

"In the case of certain categories of FPI applicants, some of the relevant information is already captured in depositories’ CAF modules, which can be leveraged without seeking the same from said applicants," the SEBI paper said.

Accordingly, in order to save time and efforts for such FPI applicants, it is proposed to "seek only such information that is unique to the aforesaid applicants,"  the market regulator added.

During discussions with market participants, SEBI said there was feedback that an abridged version of CAF should be used,, "having only those fields that are unique to such applicants."

The remaining fields should either be auto-populated from the information available in the depository system or should be disabled, as applicable, the paper added.

Apart from saving time and effort, the move would also "reduce duplication of available information," it further noted.

SEBI has invited public comments in response to its proposal till Oct. 15.