The Securities and Exchange Board of India (SEBI) has revised FATCA and CRS reporting requirements for registered intermediaries to align with the Income-tax Act, 2025 and the Income-tax Rules, 2026. Circular HO/38/14/(18)2026-MIRSD-POD2/I/25560/2026, dated 11 November 2026, takes account of the new tax law, which replaces the Income-tax Act, 1961 with effect from 1 April 2026. From that date, Automatic Exchange of Information reporting under FATCA and CRS will sit under Section 508 of the 2025 Act, read with Rules 238, 239 and 240 and Form 166 of the 2026 Rules, in place of Section 285BA, Rules 114F to 114H and Form 61B.
The circular was issued to all SEBI-registered intermediaries, stock exchanges and depositories under Section 11(1) of the SEBI Act, 1992, read with Rule 239(12)(a) of the Income-tax Rules, 2026. It follows a run of other market-structure updates from the regulator, including changes to online settlement proceedings, digital onboarding for NRI KYC, accredited investor and manager rules, and adjustments in currency derivatives.
What intermediaries must change for FATCA and CRS
The obligations apply to entities that qualify as Reporting Financial Institutions, as defined in Rule 238 of the Income-tax Rules, 2026. Those intermediaries must incorporate AEOI reporting and due diligence into their customer onboarding and Know Your Customer frameworks, and keep the information needed to meet the new rules. SEBI has advised them to refer to the Central Board of Direct Taxes guidance note on FATCA and CRS dated 24 July 2026.
Intermediaries must, among other steps, review and update self-certification collection so that the validity indicator is captured; controlling-person identification so that roles such as settlor, trustee, protector, beneficiary or other are recorded; account classification so that account type and pre-existing or new status are captured; and Form 166 XML generation software so that all new mandatory fields are included. SEBI warned that missing required fields will result in validation errors on the income-tax portal. FATCA and CRS certifications obtained from clients must be uploaded to the systems of KYC Registration Agencies. The onus of obtaining and reporting the certifications, and of related compliances, lies solely with the respective intermediaries.
Key takeaways
- SEBI’s 11 November 2026 circular aligns FATCA and CRS reporting with the Income-tax Act, 2025, from 1 April 2026.
- Form 166, under Rules 238 to 240, replaces Form 61B; Reporting Financial Institutions must fold AEOI checks into onboarding and KYC.
- Certificates must be uploaded to KYC Registration Agencies, XML fields must be complete, and the onus sits solely with the intermediary.
FAQs
When do the new forms apply? The Income-tax Act, 2025, and the Income-tax Rules, 2026, replace the 1961 Act and the 1962 Rules from 1 April 2026. Form 166 then replaces Form 61B for FATCA and CRS reporting.
The circular is on the SEBI website.
Featured image: SEBI Bhavan, Mumbai. Photo: Jimmy vikas, Wikimedia Commons (CC BY-SA 3.0).
