SEBI eases compliance for FPIs investing in government securities

SEBI has removed the requirement for Foreign Portfolio Investors (FPIs) investing exclusively in government securities to furnish investor group details. This change, effective immediately, aims to provide greater ease of investment to FPIs.

The Securities and Exchange Board of India (SEBI) has eased regulatory compliance requirements for foreign portfolio investors (FPIs) investing exclusively in government securities, removing the need for such investors to furnish investor group details. The move, effective immediately, is aimed at providing greater ease of investment to FPIs and follows changes introduced by the Reserve Bank of India (RBI) in June.

Under the revised framework, “FPIs investing only in Government Securities shall not be required to furnish investor group details,” SEBI said in a circular issued on Monday.

Exemption Scope Broadened

The latest change modifies an earlier provision in SEBI’s Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors. In September 2025, SEBI had exempted FPIs investing exclusively in government securities under the Fully Accessible Route from furnishing investor group details. The scope of the exemption has now effectively been broadened to cover FPIs investing only in government securities, irrespective of the route through which such investments are made.

Rationale Behind the Move

The change follows an RBI circular dated June 5, 2026, under which the central bank withdrew the requirement for FPIs investing in government securities through the General Route to comply with the prescribed concentration limit. With the concentration-limit requirement removed, SEBI said the identification of an investor group for an FPI investing only in government securities was no longer relevant.

Implementation and Directives

SEBI has accordingly amended the relevant provision in its Master Circular to state that FPIs investing only in government securities will not be required to furnish investor group details. The regulator has also directed depositories, custodians and Designated Depository Participants (DDPs) to make the necessary changes to their systems to implement the revised requirement. The provisions of the circular have come into force with immediate effect. (ANI)

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)