SEBI moves FATCA and CRS reporting by intermediaries to the Income-tax Act, 2025: Rules 238 to 240 and Form 166
TaxByKK · Compliance News · taxbykk.com11 Nov 2026
In short
SEBI has told every registered intermediary, stock exchange and depository that the FATCA and CRS reporting framework now runs under the Income-tax Act, 2025 and the Income-tax Rules, 2026, which replaced the 1961 Act and 1962 Rules from 1 April 2026. Intermediaries that qualify as reporting financial institutions must comply with Rules 238 to 240, build the new requirements into onboarding and KYC, update their systems for Form 166, and upload FATCA/CRS certification obtained from clients to the KYC Registration Agencies (KRAs). SEBI places the responsibility solely on the intermediary.
- Authority
- Securities and Exchange Board of India
- Circular
- HO/38/14/(18)2026-MIRSD-POD2/I/25560/2026
- Date
- 11 November 2026
- Type
- Circular to all registered intermediaries, stock exchanges and depositories
- Legal basis
- Section 11(1) of the SEBI Act, 1992, read with Rule 239(12)(a) of the Income-tax Rules, 2026
- Reporting law
- Section 508 of the Income-tax Act, 2025, read with Rules 238, 239 and 240 and Form 166 of the Income-tax Rules, 2026
- Effective from
- Not stated in the circular
What changed
| Item | Before | Now |
|---|---|---|
| Law for FATCA/CRS reporting | Section 285BA of the Income-tax Act, 1961 with Rules 114F to 114H and Form 61B | Section 508 of the Income-tax Act, 2025 with Rules 238 to 240 and Form 166 of the Income-tax Rules, 2026 |
| Definitions | Under the 1962 Rules | Reporting Financial Institution is defined in Rule 238(8) and Financial Institution in Rule 238(3) of the 2026 Rules |
| Guidance | SEBI circulars of 26 August 2015, 10 September 2015 and 20 February 2024 | Registered intermediaries are told to read Rules 238 to 240 with the CBDT Guidance Note on FATCA and CRS dated 24 July 2026 |
| Client certification | Collected by the intermediary | FATCA and CRS certification obtained from clients is to be uploaded to the KRA systems |
The circular does not say that the earlier SEBI circulars of 2015 and 2024 are withdrawn, and it does not give a deadline or an effective date for the system changes.
Who it applies to
- Stock brokers, depository participants, mutual funds, portfolio managers, AIFs and other SEBI-registered intermediaries that are reporting financial institutions
- Stock exchanges and depositories
- Compliance officers, company secretaries and CAs who file Form 166 for such entities
- Investors, who will be asked for fresh self-certification
What to do
- Check whether your entity is a reporting financial institution under Rule 238(8) of the Income-tax Rules, 2026.
- Update self-certification forms to capture the validity indicator.
- Update controlling-person records to capture each person's role: settlor, trustee, protector, beneficiary or other.
- Update account classification to capture account type and whether the account is pre-existing or new.
- Change the Form 166 XML generation software to carry every new mandatory field; the circular warns that missing fields will cause validation errors on the Income Tax portal.
- Upload FATCA and CRS certification from clients to the KRA systems.
Reference
SEBI Circular No. HO/38/14/(18)2026-MIRSD-POD2/I/25560/2026 dated 11 November 2026, Reporting requirement under Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) revised through Income-Tax Act, 2025 read with Income-Tax Rules, 2026.
Read the official PDF: SEBI circular 11 Nov 2026Written by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
Who must act on this circular?
All SEBI-registered intermediaries that qualify as reporting financial institutions under Rule 238(8) of the Income-tax Rules, 2026.
Which form carries the report now?
Form 166 under the Income-tax Rules, 2026, replacing Form 61B.
Who is responsible for obtaining and reporting the certification?
The circular says the onus lies solely with the respective intermediaries.
Is there a due date?
The circular does not state one.