SEBI eases PAN rules for foreign investors after CBDT onboarding concerns

Capital markets regulator Sebi and the Central Board of Direct Taxes have eased pan-related compliance requirements for foreign portfolio investors (FPIs), raising concerns over difficulties in onboarding under the earlier proposed income-tax rules.

In a statement issued on Friday, Sebi said the CBDT has provided multiple clarifications to simplify the PAN allotment process for FPIs following stakeholder feedback on the new Income Tax Rules, 2026 and revised PAN application forms notified in March this year.

The issue arose after the updated PAN form introduced additional mandatory fields including Taxpayer Identification Number details, representative assessee information and mandatory mobile number disclosure requirements.

Foreign investors and market intermediaries expressed concern that many of these requirements were difficult to comply with in multiple jurisdictions, potentially complicating the onboarding process for FPIs investing in Indian markets.

Sebi said it is actively engaging with the CBDT after receiving representations from stakeholders to ensure that the PAN issuance framework remains simple and investor-friendly.

Under the revised specifications, the CBDT said that the name of the authorized signatory mentioned in the Common Application Form (CAF) will be sufficient for representative assessee or authorized representative field in PAN applications.

The tax department also clarified that the responsibility of the authorized signatory shall be limited to the purpose of applying for PAN only and no supporting documents related to the authorized signatory or representative assessee shall be required.

CBDT further relaxed address and contact-related compliance requirements. As per the clarification, if details such as mobile number, landline number or email address of the authorized signatory are not available, FPIs may provide their own contact information instead.

In another relief measure, the CBDT said that if the PAN, Aadhaar or passport details of the authorized signatory are not available, the FPI registration number can be given in the application.

The tax authority also addressed concerns around taxpayer identification numbers for jurisdictions where such systems do not exist.

CBDT clarified that applicants can fill the field using the value “0000000000” in cases where TIN or equivalent number is not applicable. Further, if the FPI does not have a mobile number, it may provide a landline number instead while providing contact details.

Sebi said the latest move is aimed at ensuring continued ease of onboarding for foreign portfolio investors.

FPIs currently use a common application form for multiple regulatory processes including SEBI registration, opening bank and demat accounts and obtaining PAN registration in India.