CBDT issues Norms for allotment of PAN to FPI’s on Common Application Form [Read Notification]

Common Application Form - CBDT - PAN - FPI - RBI - Bank Account - Taxscan

The Central Board of Direct Tax (CBDT) through a notification dated February 7, 2020, notified that the procedure in the form of norms for the allotment of Permanent Account Number (PAN) to Foreign Portfolio Investors (FPI) on Common Application Form (CAF).

The notification was issued in the name of Subrata Kumar Dash, Pr. Director-General of Income Tax, New Delhi under the Ministry of Finance.

The subject-matter of the notification pertains to the Common Application Form (CAF) which can be used for the purpose of registration, the opening of bank accounts and opening of the Demat account. Furthermore, in India when the application is made for Permanent Account Number (PAN), the Foreign Portfolio Investors (FPI) must be notified by the Department of Economic Affairs under the Ministry of Finance.

Further, the Central Board of Direct Tax (CBDT) has laid down the classes of persons, format, forms, and also the procedure for allotment of Permanent Account Number (PAN) to the Foreign Portfolio Investors (FPI) by the way of Common Application Form (CAF). On January 27, 2020, the CAF was notified in order to use it for the purpose of registration, the opening of the Demat account and Bank Account and application for  Permanent Account Number (PAN) to Foreign Portfolio Investors (FPI) in India.

The board notification aims to introduce a common application form (CAF) for Foreign Portfolio Investors (FPI) in order to access Indian Security market by bringing suitable amendment in Regulation 3(2) of SEBI (FPI) Regulations, 2014.

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