SEBI allows foreign portfolio investors to submit e-PAN to intermediaries for KYC purposes
With a view to rationalise various foreign portfolio investment routes and attract more foreign funds, the Securities and Exchange Board of India (“SEBI”) has clarified that electronic PAN card (“e-PAN”) can be produced by the Foreign Portfolio Investors (“FPI”) while fulfilling the Know Your Customer (“KYC”) compliances.
This clarification is brought in by way of a circular issued by the SEBI on 30th June, 2017.
Earlier, the SEBI had informed that the intermediaries can verify the PAN of FPIs online from website authorised by Income Tax department at the time of account-opening for FPIs. The FPIs are required to provide the copy of PAN card within 60 days of account-opening or before remitting funds out of India, whichever is earlier to their intermediaries.
With the introduction of e-PAN facility from April, 2017, the FPIs can now provide e-PAN card to the intermediaries within 60 days of account opening or before remitting funds out of India.