SEBI launches digital signature integration facility for FPIs, forms panel for MII technology roadmap

Market regulator Securities and Exchange Board of India on Thursday said it has rolled out an integrated digital signature facility to simplify the registration process for foreign portfolio investors (FPIs), as part of its push to further digitise market access.

SEBI said a new Digital Signature Certificate (DSC) functionality from Indian DSC issuers has been embedded into the Common Application Form (CAF) portal. This will allow FPIs to apply for registration and obtain a digital signature through a single, unified process.

The move builds on a March 2023 circular that had permitted FPIs to use digital signatures for executing the CAF and other registration-related documents.

With the latest enhancement, applicants can now directly apply for a DSC while submitting the CAF on the portal, reducing procedural steps and easing onboarding, SEBI said.

SEBI said detailed process flows and frequently asked questions related to obtaining a DSC have been made available on the India Market Access Portal.

FPI applicants have been encouraged to make optimal use of the enhanced digital functionality, the regulator added.

India has been steadily seeking to simplify entry norms and operational processes for foreign investors as it looks to deepen capital markets and attract long-term overseas flows.

Roadmap for MIIs

Separately, the regulator announced a working group that will formulate both a five-year and a 10-year technology roadmap for market infrastructure institutions (MIIs), which include stock exchanges, clearing corporations and depositories.

The move comes as technology plays an increasingly central role in trading, surveillance, risk management, investor protection and regulatory oversight.

SEBI said the panel will take a “holistic and forward-looking” view on the adoption of emerging technologies such as artificial intelligence and machine learning, distributed ledger technology, cloud computing, supervisory and regulatory technology tools, tokenisation and quantum-safe systems.

The working group will be chaired by Dr D.B. Phatak, professor emeritus at the Indian Institute of Technology Bombay, and will include chairpersons of the standing committees on technology of MIIs, senior officials from stock broking firms, registrars and transfer agents, as well as technology and securities market experts.