The Securities and Exchange Board of India (SEBI) has introduced a new single-window access framework to facilitate participation by low-risk foreign investors in the Indian securities market. This initiative aims to streamline compliance procedures and enhance the country’s appeal as an investment destination.
The newly established framework, known as the Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI), offers simpler investment access for these investors. It unifies the registration process across various investment routes and minimizes repeated compliance requirements.
SEBI categorizes low-risk foreign investors as government-owned funds, central banks, sovereign wealth funds, multilateral entities, highly regulated public retail funds, appropriately regulated insurance companies, and pension funds.
On December 1, SEBI released two notifications announcing the SWAGAT-FI framework for Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs). The amendments to the FPI and FVCI regulations are set to take effect on June 1, 2026. This follows the approval of a proposal by the SEBI board in September.
Under the SWAGAT-FI framework, SWAGAT-FIs applying for or already registered as FPIs can also register as FVCIs without additional documentation. This dual registration will enable them to invest in both listed equity instruments and debt securities of Indian companies as FPIs, as well as in unlisted Indian companies in specified sectors and startups as FVCIs.
In a move to simplify compliance further, SEBI has extended the validity period for registration, including fee payment and Know Your Customer (KYC) documentation reviews, to ten years from the prior three or five years.
Additionally, SEBI has clarified provisions for FPIs operating from International Financial Services Centres (IFSCs). The regulator has allowed retail schemes in IFSCs, managed by a resident Indian sponsor, to register as FPIs. Currently, Alternative Investment Funds in IFSCs with a resident Indian manager are permitted to register as FPIs.
SEBI noted discrepancies between the limits on sponsor contributions from resident Indian non-individuals in funds established in IFSCs. To resolve this, they amended the FPI Regulations, setting the maximum sponsor contribution at ten percent of the fund’s corpus or assets under management for retail schemes.
As of June 30, 2025, India had 11,913 registered FPIs holding assets worth ₹80.83 lakh crore. SWAGAT-FIs are projected to account for over 70 percent of total FPIs’ assets under custody, according to SEBI data.
Published on December 3, 2025.
