Easier PAN verification process for FPIs

To ease the PAN (Permanent Account Number) verification process at the time of account-opening for foreign portfolio investors (FPIs), the Securities and Exchange Board of India (Sebi)   said on Thursday intermediaries can verify the PAN of FPIs online through a website authorised by the income tax department.
 
“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 the income-tax department at the time of account-opening for FPIs,” Sebi said in a circular.
 

 
“However, FPIs need to provide a copy of the 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 foreign 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.