The Securities and Exchange Board of India (Sebi) on May 15, 2026 issued clarifications to make the Permanent Account Number (PAN) application process easier for Foreign Portfolio Investors (FPIs), after overseas investors and market intermediaries raised concerns over the new Income-tax Rules, 2026.
Earlier this year, the Central Board of Direct Taxes (CBDT) updated PAN application forms by adding more disclosure requirements and making some fields compulsory that were earlier optional. Market participants feared these changes could slow down the onboarding process for foreign investors looking to invest in Indian markets.
Sebi said it has been working closely with CBDT to resolve these issues and ensure that the registration and onboarding process for FPIs remains smooth and hassle-free.
What Changed In PAN Application Process
CBDT had introduced revised PAN application forms on March 20, 2026, under the new Income-tax Rules. The new forms asked FPIs to provide additional details, such as Taxpayer Identification Number (TIN), information related to authorised representatives, and supporting documents.
The updated rules also made some fields compulsory that were optional earlier, including mobile numbers.
According to industry participants, these requirements created difficulties for many foreign investors because some countries do not issue tax identification numbers similar to India’s system. In several cases, overseas investors also faced challenges in providing documents related to authorised representatives in the format required under Indian rules.
Following these concerns, CBDT has now provided several relaxations and clarifications to make the PAN application process easier for FPIs.
Authorised Signatory Can Now Be Used For PAN Applications
In a major relief for foreign investors, CBDT has clarified that the authorised signatory already mentioned in the Common Application Form (CAF) can also be used as the authorised representative for PAN applications.
Sebi said FPIs will not have to submit separate supporting documents for the authorised signatory, representative assessee, or authorised representative.
The regulator also clarified that the responsibility of the authorised signatory will be limited only to the PAN application process.
Flexibility On Contact Details And Identity Information
The new clarifications also provide flexibility in furnishing contact details. If the authorised signatory’s address, phone number, or email ID is unavailable, FPIs can provide the corresponding details of the FPI entity itself.
Similarly, if PAN, Aadhaar, or passport details of the authorised signatory are unavailable, investors can instead furnish their FPI registration number.
Relief On Taxpayer Identification Number Requirement
Another major operational hurdle related to Taxpayer Identification Numbers (TINs). Some countries either do not issue TINs or follow different tax identification systems. To address this, CBDT has allowed FPIs to enter “0000000000” in cases where TIN or an equivalent number is not applicable in a particular jurisdiction.
Additionally, if a mobile number is unavailable, investors can now provide a landline number instead.
Why Sebi Intervened
The latest changes are part of Sebi’s broader efforts to improve ease of doing business for foreign investors investing in Indian financial markets. FPIs play an important role in India’s capital markets by bringing liquidity to equities, bonds, and derivatives. As a result of this, any delays or difficulties in the onboarding and compliance process can impact the flow of overseas investments into the market.
Industry participants had raised concerns that the revised PAN application rules could slow down registrations and create additional procedural hurdles, especially for investors operating across different countries with varying compliance systems.
Why This Matter For Investors
FPIs play a major role in providing liquidity to Indian stock markets. By simplifying PAN-related onboarding rules, Sebi and CBDT aim to reduce compliance issues and delays in the registration process for foreign investors. The easier process could improve India’s image in terms of ease-of-doing-business and help attract smoother and more consistent long-term foreign investments into domestic markets.
