SEBI introduces simplified onboarding for FPIs, reducing data duplication

To streamline the onboarding of Foreign Portfolio Investors (FPIs) and minimise duplication of data, SEBI announced on Tuesday that applicants may now choose between a full Common Application Form (CAF) or an abridged version covering unique fields only.

For those opting for the abridged form, the remaining fields will either auto-populate with data from the depository system or be disabled if pre-existing information is available in the CAF module, SEBI specified in a circular.

Applicants must consent to using this pre-filled data and verify its accuracy, aside from any updates they provide.

This measure will take effect three months after the circular’s issuance. Per SEBI’s Master Circular in May, all FPI applicants are currently required to submit a completed CAF along with supporting documentation for registration.

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The regulator noted that in certain categories, such as multiple funds under an Investment Manager, sub-funds of a master fund, or schemes of insurance companies, much of the necessary information is already present in depositories’ CAF module. This data can be leveraged to avoid asking the same details again from applicants.

To support this, SEBI stated that FPIs may be given the choice of filling the entire CAF or completing only an abridged version, containing fields unique to them. Designated Depository Participants (DDPs) are tasked with ensuring that all auto-populated data is accurately reflected in each applicant’s CAF module.

In coordination with SEBI, the Custodians and Designated Depository Participants Standards Setting Forum (CDSSF) will set guidelines for the auto-populated fields and related processes, providing a clear framework for this streamlined approach.

Also read: RBI issues rules for converting excess FPI to FDI in Indian firms

(With PTI inputs)