SEBI FPI Onboarding in 5 Days: Digitisation Push
Why in the news
SEBI is trying to make it far quicker for overseas investors to register in India. It has met custodians to find delays and is also talking to the RBI and the Income Tax Department.
Key facts
- Target: onboarding in 5 days, against close to a month now.
- A pilot built with custodians reportedly met the five-day mark.
- SEBI held at least two meetings with custodians in the last month.
- FPI assets: ₹74.77 trillion by May 2026 (NSDL data), amid outflows.
Today vs proposed
| Stage | Current process | SEBI’s push |
|---|---|---|
| Registration | Online on the NSDL platform | Fully digital end to end |
| Authorisation | Designated depository participant (DDP) | Better coordination among intermediaries |
| Documents | Signed hard copies of the Common Application Form, embassy attestation, tax formalities | Drop attestations and paperwork; Indian digital signatures |
| Signing | Physical | One digital flow issuing certificates and e-signatures via the CAF |
Background
- FPI: a non-resident entity investing in Indian stocks, bonds, mutual funds and derivatives; regulated under SEBI (FPI) Regulations, 2019. The category merged earlier FII, QFI and sub-account routes.
- Categories: Category I (governments and related, such as sovereign funds and central banks) and Category II (regulated entities like pension funds, banks, insurers, broad-based funds, family offices). Category III was merged into II.
- DDP: SEBI-approved firm, usually a large bank, that registers FPIs and manages KYC and compliance.
- CAF: one form combining SEBI, RBI and tax formalities.
- NSDL: first and largest depository, set up in November 1996, Mumbai; it holds securities in demat form, settles NSE and BSE trades and keeps the FPI registry. CDSL, the second, began in 1999, also Mumbai.
Exam angle
- Regulator: SEBI; FPI rules date from 2019.
- CAF is the single form for SEBI, RBI and tax steps.
- NSDL (1996) came before CDSL (1999).