SEBI Revises FATCA and CRS Rules Under New Tax Law. Read the key points, why it matters and what businesses should watch next.
SEBI Aligns FATCA and CRS Reporting With New Tax Law
The Securities and Exchange Board of India has issued a circular revising the automatic exchange of information regime for entities it regulates, so that FATCA and CRS obligations track the Income-tax Act, 2025 and the Income-tax Rules, 2026. The circular, HO/38/14/(18)2026-MIRSD-POD2/I/25560/2026, is dated 11 November 2026 and was addressed to all SEBI-registered intermediaries, stock exchanges and depositories. It was issued under Section 11(1) of the SEBI Act, 1992, read with Rule 239(12)(a) of the Income-tax Rules, 2026.
What Changes From April 2026
The Income-tax Act, 2025 and the Income-tax Rules, 2026 take effect on 1 April 2026, replacing the 1961 Act and the 1962 Rules. From that date, AEOI reporting under FATCA and CRS will be governed by Section 508 of the new Act, read with Rules 238, 239 and 240 and Form 166 of the 2026 Rules. These provisions displace Section 285BA, Rules 114F to 114H and Form 61B, which currently anchor the reporting framework. In effect, Form 166 becomes the reporting form in place of Form 61B.
Why It Matters for Intermediaries
The revised obligations fall on entities that meet the definition of a Reporting Financial Institution under Rule 238 of the 2026 Rules. Such intermediaries are expected to build AEOI reporting and due diligence into their customer onboarding and KYC processes, and to retain the data needed to comply. SEBI has directed them to the Central Board of Direct Taxes guidance note on FATCA and CRS dated 24 July 2026.
The circular lists specific operational steps. Intermediaries must review self-certification collection so the validity indicator is captured, and update controlling-person identification to record roles such as settlor, trustee, protector or beneficiary. Account classification must capture account type and whether an account is pre-existing or new. Form 166 XML generation software must be updated to include all newly mandatory fields. SEBI cauti…
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