FATCA & CRS Compliance: SEBI Directs Intermediaries to Update Customer Onboarding and Reporting Systems

CIRCULARHO/38/14/(18)2026-MIRSD-POD2/I/25560/2026

November  11, 2026

To,All Intermediaries registered with SEBI
All Stock Exchanges 
All Depositories

Dear Sir/Madam,

Sub:Reporting requirement underForeign Account Tax Compliance Act (FATCA) and Common Reporting  Standard  (CRS)  revised  through Income-Tax  Act,  2025  read  with Income-Tax Rules, 2026 

1.SEBI,videCircular no.   CIR/MIRSD/2/2015   dated   August   26,   2015, Circular no.CIR/MIRSD/3/2015 dated September 10, 2015and Circular no.SEBI/HO/MIRSD/SECFATF/P/CIR/2024/12dated   February   20,   2024, informed   all intermediariesregistered with Boardregarding reporting requirements and due diligence underForeign Account Tax Compliance Act (“FATCA”) and Common Reporting Standards (“CRS”). The aforesaid circulars were issued in terms of Section 285BA of the Income-Tax Act, 1961,read withRule114F to 114H, and Form 61B of the Income-Tax Rules, 1962.

2.With recent changes in the Income Tax regime, the Income Tax Act, 2025, read with the Income Tax Rules, 2026 (hereinafter referred to as “IT Rules, 2026”), has replaced the Income  Tax  Act,  1961,  read  with  the  Income  Tax  Rules,  1962,with  effect  from  April  1, 2026. The reporting requirements under the Automatic Exchange of Information (“AEOI”) framework  for  reportable  accounts  under  FATCA/CRS  reporting  have  been  revised  in terms of Section 508 of theIncome Tax Act, 2025, read with Rules 238, 239, and 240, and Form 166 of the IT Rules, 2026.

3.In  terms  of  Rule  239(12)(a)  of  the IT  Rules,  2026,  the  regulator  is  required  to  issue instructions or guidelines to its regulated financial institutions to incorporate the reporting and due diligence procedures specified under Rules 238 to 240, prescribe the manner and procedure  for  maintaining  account  information,  and  ensure  its  availability  to  satisfy reporting obligations.

4.The reporting obligations apply to entities that qualify as Reporting Financial Institutions (“RFIs”). "RFI" is defined in Rule 238(8) of the IT Rules, 2026, and "Financial Institution" is defined in Rule 238(3) of the IT Rules, 2026."

5.Accordingly, all registered intermediaries, who are RFI, shall take the necessary steps to ensure compliance with Rules 238 to 240 of the IT Rules, 2026, and are advised to refer to theGuidance Note on FATCA and CRS issued by the Central Board of Direct Taxes.
5.1.IT  Rules,  2026  are  available  at https://www.incometaxindia.gov.in/income-tax-rule-2026
5.2.Guidance  Note  on  FATCA  and  CRS  dated  July  24,  2026,providing  guidance  to Reporting Financial Institutions (RFIs),is available at https://www.incometaxindia.gov.in/documents/d/guest/e-book-crs-and-fatca-guidance-note-faqs-pdf

6.Registered   intermediaries   shall   incorporate   AEOI reporting   and  due  diligence requirements into their customer onboarding and Know Your Customer (KYC) frameworks, and maintain the information required to meet their obligations under the IT Rules, 2026. Registered intermediaries shall, inter alia, review and update the following in accordance with the IT Rules, 2026:
6.1.Self-certification collection procedures to capture the validity indicator;
6.2.Controlling   Person   identification   systems   to   capture   roles   (settlor/trustee/ protector/beneficiary/other);
6.3.Account classification systems to capture account type and pre-existing/new status;
6.4.Form 166 XML generation software to include all new mandatory fields. Failure to include required fields will result in validation errors on the Income Tax portal.

7.Registered  intermediaries  shall  upload  the  FATCA  and  CRS  certification  obtained  from clients onto the systems of the KYC Registration Agencies (KRAs).

8.The  onus  of  obtaining  and  reporting  the  FATCA  and  CRS  certification  and  related compliances shall lie solely with the respective intermediaries.

9.This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992read with Rule 239(12)(a) of the Income-tax Rules, 2026, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.

10.This circular is available on SEBI website at www.sebi.gov.in under the category: ‘Legal → Circulars’.

Yours faithfully, 
Bhumika Kanojia
Deputy General ManagerTel no.: +91-22-2644 9202
bhumikak@sebi.gov.in