SEBI is set to fully digitize the Foreign Portfolio Investor (FPI) registration process, aiming to reduce the approval timeline from months to just a few days, according to Chairman Tuhin Kanta Pandey on Wednesday.
The transition to digital signatures and a completely paperless system is designed to make it easier for international investors while also addressing concerns related to data privacy. Additionally, a new registration platform is being developed by CDSL to enhance service quality and alleviate existing bottlenecks.
Speaking at Goldman Sachs’ 14th India CIO Conference, Pandey emphasized that FPIs have been integral to the growth of India’s capital markets, noting that portfolio inflows since 1992 have yielded a 9.3 percent XIRR. As of September 2025, FPIs manage $876 billion in assets, accounting for approximately 17 percent of listed equities.
SEBI is also considering operational modifications to facilitate trading for FPIs. Discussions are ongoing regarding the potential for netting settlements for trades executed within the same day, as FPIs are currently required to deliver and receive for each trade. Talks with the Reserve Bank of India (RBI) and the Finance Ministry are in progress.
Further initiatives to ease market access are being explored under the SWAGAT-FI framework, which may eventually enable trusted foreign investors to use alternative FEMA routes without requiring additional approvals.
Pandey indicated that recent regulatory reforms have been influenced by ongoing feedback from FPIs. Changes have included a comprehensive overhaul of the registration module, a streamlined regulatory framework for FPIs focused solely on government securities, and modifications to the anchor investor framework in IPOs accommodating large FPIs managing multiple funds.
He stated that SEBI remains committed to its dual role as protectors of market integrity and facilitators of efficient capital formation. “We are dedicated to a consultative, transparent, and risk-based regulatory approach,” he remarked.
Pandey highlighted the importance of capital markets as a fundamental component of economic growth rather than merely a barometer of the economy. Amid global uncertainty, India has distinguished itself through resilience and growth, with strong macroeconomic fundamentals and excellent digital infrastructure. He added that the recent upgrade from S&P further validates this strength.
The article was published on November 19, 2025.
