SEBI and the Central Board of Direct Taxes have relaxed PAN-related compliance requirements for Foreign Portfolio Investors, aiming to make the onboarding process simpler and reduce procedural delays for global investors. The move follows concerns that changes under the Income Tax Rules, 2026 and revised PAN application framework had increased documentation and compliance burdens for FPIs.
PAN Application Process Simplified
Officials said the updated PAN application forms notified in March had introduced several mandatory fields, including taxpayer identification details, representative assessee information and mobile number disclosure. These requirements had raised concerns among foreign investors operating across multiple jurisdictions.
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To address the issue, SEBI held discussions with CBDT to streamline the process. Under the latest clarification, the name of the authorised signatory mentioned in the Common Application Form will be sufficient to serve as the representative assessee or authorised representative.
CBDT has clarified that the role of the authorised signatory will be limited strictly to the PAN application process. No additional supporting documentation will be required for this purpose, easing the compliance burden on foreign investors.
Contact Detail Norms Relaxed
The regulator has also eased contact information requirements. If the mobile number, landline number or email address of the authorised signatory is unavailable, FPIs will be allowed to provide their own contact details.
In another relaxation, CBDT has said that if PAN, Aadhaar or passport details of the authorised signatory are not available, the FPI registration number may be used instead. This provides greater flexibility for applicants facing jurisdiction-specific limitations.
Applicants from jurisdictions where a Taxpayer Identification Number is not applicable will be allowed to enter “0000000000” in the relevant field. The clarification is expected to help investors from countries that do not operate formal TIN systems.
Move Aimed at Smoother Investment Flows
According to SEBI, FPIs generally use a single Common Application Form for several regulatory requirements, including SEBI registration, bank account opening, demat account setup and PAN application. Any delay in this integrated process can affect overall investment flows.
Market analysts believe the easing of rules will improve investor confidence and support smoother foreign capital inflows into Indian financial markets. The relaxation is also seen as part of a wider effort to make India’s investment ecosystem more transparent, efficient and investor-friendly.
Authorities have reiterated their focus on maintaining a simplified and digitally enabled framework for foreign investors. Further improvements are expected as regulators continue efforts to make the FPI onboarding process more seamless.
