Sebi eases PAN verification process for FPIs

NEW DELHI: To ease the PAN verification process at the time of account-opening of FPIs, markets regulator Sebi on Thursday said intermediaries can verify the PAN of FPIs online through a website authorised by the Income Tax department.

However, FPIs would have to provide the copy of the PAN card to their intermediaries within 60 days of account-opening or before remitting funds out of India, whichever is earlier.

The move is based on representations received from stakeholders and is aimed at easing the process of PAN verification for FPIs at the time of account-opening.

"Based on representations received from stakeholders and to further ease the PAN verification process at the time of account opening of FPIs, it is decided that the intermediaries can verify the PAN of FPIs online from website authorised by Income Tax department at the time of account-opening for FPIs," Sebi said in a circular.

"However, FPIs need to provide the copy of PAN card within 60 days of account-opening or before remitting funds out of India, whichever is earlier to their intermediaries," it added.

The capital markets regulator has already put in place an easier registration process and operating framework for overseas entities seeking to invest in Indian capital markets.

Besides, FPIs are granted permanent registration as against the earlier practice of approvals granted for one year or five years to the overseas entities seeking to invest in Indian markets. They will be permanent unless suspended or cancelled by the board or surrendered by the FPI.