Sebi Eases Foreign Investment Rules

The Securities and Exchange Board of India (Sebi) is actively working to reduce friction for foreign investors, enhancing their entire investment journey. Chairman Tuhin Kanta Pandey announced on Monday that onboarding processes are becoming faster and more digital, with existing frameworks like SWAGAT-FI already benefiting approximately 205 FPIs since June 1, 2026.

Sebi's future approach prioritizes easier access, deeper markets, and increased resilience. Designated depository participants are leveraging digital workflows and APIs to significantly cut FPI onboarding times. The regulator intends for these technology-driven solutions to become a systemic feature, ensuring widespread ease of access for global investors.

Further market structure enhancements include consultations on fund settlement for mutual funds and addressing derivative settlement prices on expiry days. Sebi is also focused on widening cash market participation, improving securities lending and borrowing, and supporting hedging activities to strengthen price discovery.

For corporate bonds, Sebi is developing a market-making framework for liquidity and repo access. Consultations are underway for Fixed Income Channel Partners to expand distribution via online platforms. A Credit Risk-o-Meter is also proposed to improve credit risk understanding for investors.

Additionally, the Accredited Investor framework is under review, with proposals to permit investment in foreign securities and establish a framework for global fund management from India. Sebi's objective remains clear: reduce unnecessary friction, deepen markets, and strengthen safeguards.