As part of its ongoing efforts to digitise and simplify market entry processes, SEBI has facilitated a new Digital Signature Certificate (DSC) functionality for Foreign Portfolio Investors (FPIs). The initiative builds upon SEBI’s earlier decision permitting FPIs to use digital signatures for registration-related documentation and represents a further step towards seamless, paperless onboarding.

Key Developments / Highlights

• A new DSC functionality issued by Indian DSC providers has been embedded within the Common Application Form (CAF) portal.
• The updated system integrates the FPI registration application and DSC application into a single, unified digital process.
• FPIs can now apply for a DSC directly while submitting their CAF, eliminating the need for separate workflows.
• Detailed process flows and FAQs have been made available on the India Market Access Portal to support applicants.

Practical Implications for FPIs and Intermediaries

• FPIs can expect faster onboarding timelines due to reduced procedural steps and documentation touchpoints.
• The unified process reduces operational complexity and dependency on parallel manual coordination for DSC issuance.
• Intermediaries and designated depository participants may benefit from streamlined verification and processing.
• Improved digital integration enhances transparency and predictability in the registration lifecycle.

Compliance and Governance Impact

• The enhanced DSC functionality strengthens digital governance by ensuring secure and authenticated execution of registration documents.
• Centralised processing through the CAF portal improves audit trails and regulatory oversight.
• The move aligns FPI onboarding with SEBI’s broader digital-first regulatory approach while maintaining compliance standards.

Key Takeaways

• SEBI’s initiative marks a significant operational improvement in the FPI registration framework.
• FPIs should familiarise themselves with the revised CAF process and integrated DSC application mechanism.
• Early adoption of the enhanced digital facility can help minimise onboarding delays and procedural friction.