CBDT Simplifies PAN Compliance Norms for Foreign Portfolio Investors

Market regulator Securities and Exchange Board of India (SEBI) announced on Friday that the Central Board of Direct Taxes (CBDT) has issued a set of significant clarifications aimed at addressing procedural and compliance-related difficulties being encountered by Foreign Portfolio Investors (FPIs) while applying for and obtaining Permanent Account Numbers (PAN).

The move is intended to simplify regulatory processes and ensure a more efficient and seamless onboarding experience for overseas investors participating in Indian capital markets.

According to SEBI, these clarifications were issued following its active engagement with the CBDT after receiving representations from various stakeholders, including market participants and intermediaries, who had flagged practical challenges arising from the revised PAN application forms notified under the Income-tax Rules, 2026.

The concerns primarily related to compliance requirements and documentation processes, which were perceived as creating hurdles in the onboarding workflow for FPIs. With the latest clarifications, the authorities aim to remove ambiguity, streamline procedures, and support smoother participation of foreign investors in India’s financial markets.