The Union budget for this year had proposed a single window clearance for foreign portfolio investors (FPIs), but such a mechanism is far from ready because of differences between the Securities and Exchange Board of India (Sebi) and the Central Board of Direct Taxes (CBDT), said two regulatory officials with direct knowledge.
While Sebi is in favour of reducing documentation, CBDT wants to stick to its own set of documents, including an incorporation document and Foreign Account Tax Compliance Act (Fatca) documents, they said. The single window clearance envisaged a common application form for obtaining know your client (KYC) information under Sebi rules and permanent account number (PAN) under tax rules.
