**Summary:**
This circular, IMDFPICCIRP2020022, issued by the Securities and Exchange Board of India (SEBI) on February 4, 2020, addresses the implementation of a Common Application Form (CAF) for Foreign Portfolio Investors (FPIs). The circular is directed to FPIs, Designated Depository Participants (DDPs), custodians of securities, recognized stock exchanges, clearing corporations (including those in International Financial Services Centres), depositories (NSDL and CDSL), stock brokers, and Depository Participants, and KYC Registration Agencies (KRAs).
The primary purpose of the CAF is to streamline the processes for: (a) FPI registration with SEBI, (b) allotment of Permanent Account Number (PAN), and (c) Know Your Customer (KYC) compliance for opening bank and Demat accounts. Applicants seeking FPI registration must complete the CAF and its annexure, providing all required supporting documents and applicable fees for SEBI registration and PAN issuance. Other intermediaries dealing with FPIs may rely on the information provided in the CAF for KYC purposes.
DDPs may continue to accept in-transit FPI registration applications in the previously prescribed format (as per the operational guidelines issued on November 5, 2019) for a period of 60 days from the date of this circular.
This circular is issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Sub-rule (14)(i) of Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, to protect investor interests, promote the development of the securities market, and regulate the securities market.
The circular and its enclosures, including the CAF, Annexure to CAF (Declarations and Undertakings), and operational guidelines for FPIs and DDPs, are available on the SEBI website at www.sebi.gov.in under the "Circulars" section. Custodians are requested to disseminate the contents of this circular to their FPI clients.
For further information, contact Achal Singh, General Manager, at Tel No.: 022-26449619 or via email at achals@sebi.gov.in.
Key Entities Referenced
Foreign Portfolio Investors: Refers to investors investing in financial assets of a country. Addressed in the circular through their Designated Depository Participants.
Designated Depository Participants: Entities through which Foreign Portfolio Investors operate.
Securities and Exchange Board of India: Regulatory body in India for the securities market, responsible for registration of Foreign Portfolio Investors.
Permanent Account Number: A unique identification number required for financial transactions in India.
Know Your Customer: Refers to the process of verifying the identity of clients for financial institutions.
Common Application Form: A standardized form for Foreign Portfolio Investors to register with Securities and Exchange Board of India, obtain Permanent Account Number, and complete Know Your Customer procedures.
F. No. 4152016ECB dated January 27, 2020: Notification number from the Government of India regarding the Common Application Form.
Securities and Exchange Board of India Act, 1992: The law under which the circular is issued, granting powers to the Securities and Exchange Board of India.
CIRCULAR
IMD/FPI&C/CIR/P/2020/022
February 04, 2020
To,
1. All Foreign Portfolio Investors ("FPIs") through their Designated Depository
Participants ("DDPs")/ Custodian of Securities.
2. Designated Depository Participants ("DDPs")/ Custodian of Securities.
3. All Recognized Stock Exchanges/ Clearing Corporations
4. All recognized Stock Exchanges and Clearing Corporations in International
Financial Services Centres
5. The Depositories (NSDL and CDSL)
6. Stock Brokers through Recognized Stock Exchanges
7. Depository Participants through Depositories
8. KYC Registrations Agencies (KRAs)
Dear Sir / Madam,
Subject: Common Application Form for Foreign Portfolio Investors
1. The Government of India vide notification number F. No. 4/15/2016-ECB dated
January 27, 2020 notified the Common Application Form (CAF) for the purpose of
(a) registration of Foreign Portfolio Investors (FPIs) with Securities and Exchange
Board of India, (b) allotment of Permanent Account Number (PAN) and (c) carrying out
of Know Your Customer (KYC) for opening of Bank & Demat Account.
2. The applicants seeking FPI registration shall be required to duly fill CAF and
‘Annexure to CAF’ and provide supporting documents and applicable fees for SEBI
registration and issuance of PAN. The other intermediaries dealing with FPIs may rely
on the information in CAF for the purpose of KYC.
3. DDP may continue to accept in–transit FPI registration applications, for a period of 60
days from date of issuance of this Circular, received in the form prescribed in
operational guidelines issued on November 05, 2019.
4. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 and Sub-rule 14(i) of Rule 9 of the
Prevention of Money-laundering (Maintenance of Records) Rules, 2005 to protect the
interests of investors in securities and to promote the development of, and to regulate
the securities market.
Page 1 of 25. A copy of this circular is available at the web page “Circulars” on our website
www.sebi.gov.in. Custodians are requested to bring the contents of this circular to the
notice of their FPI clients.
Yours faithfully,
ACHAL SINGH
General Manager
Tel No.: 022-26449619
achals@sebi.gov.in
Enclosed: 1. CAF notified by Government of India
2. Annexure to CAF (Declarations and Undertakings)
3. Operational guidelines for FPIs & DDPs and FPIs
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