The government has notified a revised common application form for foreign portfolio investors (FPIs) to streamline registration and account opening processes. This move aims to attract foreign capital into the debt market and support the rupee.
The revised application form and recent tax exemptions are designed to make India a more attractive destination for foreign investment, potentially stabilizing the rupee and boosting the country's debt market.
The Indian government has notified a revised common application form for foreign portfolio investors (FPIs), aiming to streamline their registration and account opening processes in the country. This move is part of a broader effort to attract foreign capital into the debt market and bolster the rupee.
The updated form, issued by the Department of Economic Affairs (DEA), simplifies requirements and introduces a new category for FPIs investing exclusively in government securities. It also removes certain detailed questions regarding investors' occupations and aliases, while retaining most other requirements. This revised form replaces the one that was notified on January 27, 2020.
This notification follows recent government actions, including an ordinance on June 5, to scrap long-term capital gains tax (12.5%) and withholding tax (20%) on government securities held by FPIs. Additionally, the government expanded the range of government securities available under the fully accessible route to include tenors of 15, 30, and 40 years, as well as sovereign green bonds, up from the previous limit of 10 years.