The Securities and Exchange Board of India (Sebi) has proposed a significant change to the tax compliance process for foreign portfolio investors (FPIs) in India. The regulator suggests that FPIs should be able to designate 'authorised signatories' rather than 'authorised representatives' (AR) or 'representative assessees' (RA) when registering or renewing their licenses to trade on Indian exchanges. This recommendation comes in light of concerns from professionals, such as employees of offshore asset managers and local consultants, who are hesitant to be identified as representatives due to fears of potential tax liabilities. By allowing the designation of authorised signatories, who have a narrower role limited to signing documents, Sebi aims to mitigate these concerns. The tax implications for FPIs remain complicated, as they must pay tax on earnings before remitting funds overseas, and may face scrutiny from the tax department regarding their tax obligations. The proposed change could help streamline the registration process for FPIs and encourage greater foreign investment in Indian markets.