Description

SEBI introduces integrated DSC functionality within the CAF portal, allowing FPI applicants to obtain Digital Signature Certificates during the registration process itself.

Summary

SEBI has developed a new Digital Signature Certificate (DSC) functionality from Indian DSC issuers within the Common Application Form (CAF) portal for Foreign Portfolio Investors (FPIs). This enhancement integrates the FPI registration application and DSC application into a single unified process, significantly streamlining the onboarding process for FPI clients. Applicants can now directly apply for DSC while submitting their CAF in the portal.

Key Points

  • New DSC functionality integrated within the CAF portal for FPIs
  • FPI registration and DSC application combined into a single unified process
  • Builds upon SEBI’s March 27, 2023 circular that permitted FPIs to use digital signatures for CAF execution
  • Detailed process flows and FAQs available on India Market Access Portal at https://indiamarketaccess.in/digital-signature-certificate.html
  • FPI applicants encouraged to utilize this enhanced digital functionality
  • Part of ongoing digitization initiatives for FPI onboarding

Regulatory Changes

This is an enhancement to existing regulations rather than a new regulatory requirement. SEBI had previously permitted FPIs to use digital signatures via circular dated March 27, 2023. The current initiative embeds DSC issuance directly into the CAF portal, making the process more seamless but does not impose new regulatory obligations.

Compliance Requirements

No new compliance requirements are imposed. FPI applicants can now:

  • Optionally apply for DSC directly through the CAF portal during registration
  • Continue using existing methods if preferred
  • Access detailed process flows and FAQs on the India Market Access Portal for guidance

Important Dates

  • January 08, 2026: Press release date announcing the new DSC functionality
  • March 27, 2023: Original SEBI circular permitting FPIs to use digital signatures (referenced)

Impact Assessment

Positive Impacts:

  • Simplifies and accelerates FPI onboarding process by eliminating need for separate DSC application
  • Reduces administrative burden on FPI applicants and intermediaries
  • Enhances India’s ease of doing business for foreign investors
  • Supports broader digitization goals for securities market operations

Operational Impact:

  • FPIs and their intermediaries can complete registration more efficiently
  • Single-window approach reduces processing time and coordination efforts
  • May encourage increased FPI participation due to simplified registration

Market Impact:

  • Minimal direct market impact; primarily a procedural enhancement
  • Medium-term positive effect on FPI inflows through improved investor experience
  • Aligns with India’s efforts to attract foreign investment through digital infrastructure improvements

Impact Justification

This is a procedural enhancement that streamlines FPI registration through integrated DSC functionality, improving ease of doing business but not creating new compliance obligations or market restrictions.