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SEBI Eases FPI Compliance for Govt Securities
7 Sep
Summary
- SEBI removed investor-group details for FPIs investing only in government securities.
- This change follows RBI's withdrawal of concentration limits for such investments.
- The exemption now applies to all FPIs in government securities, regardless of route.
The Securities and Exchange Board of India (SEBI) has simplified compliance requirements for foreign portfolio investors (FPIs) exclusively investing in government securities. Effective September 7, 2026, these FPIs are no longer obligated to provide investor-group details.
This regulatory adjustment expands a previous exemption that was limited to FPIs investing via the Fully Accessible Route (FAR). The change is closely linked to the Reserve Bank of India's (RBI) decision on June 5, 2026, to remove concentration limits for FPIs investing in government securities under the General Route.
Previously, concentration limits necessitated the collection of investor-group data to monitor aggregate exposure. With these limits rescinded for the General Route, SEBI determined that identifying investor groups for FPIs solely in government securities is now irrelevant. This modification aims to streamline processes for overseas investors focused on India's government bond market.
