The Securities and Exchange Board of India (Sebi) has approached the Central Board of Direct Taxes (CBDT) to clarify the obligations of 'authorised representatives' (AR) for foreign portfolio investors (FPIs). Under new income-tax rules, FPIs must designate either an AR or a 'representative assessee' (RA) when registering to trade on Indian stock exchanges. However, many professionals are hesitant to assume this role due to uncertainties surrounding potential tax liabilities. Sebi's chief general manager, Aparna Thyagarajan, emphasized the need for clarity during a recent webinar, stating that discussions with CBDT are ongoing. The complexities arise from fears that representatives may be held accountable for unpaid taxes, especially after recent legal challenges involving foreign investors. Sebi aims to ease the process for FPIs, including faster application approvals and clearer rules for identifying beneficial owners, with a master circular anticipated in May. By focusing on risk-based KYC reviews, Sebi seeks to reduce friction for low-risk funds while ensuring compliance with tax regulations.