SEBI exempts FPIs in G-Secs from certain general obligations

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SEBI exemption FPIs in G-Secs SEBI (FPI) Regulations 2019 Regulation 22(1)

Notification F.No. SEBI/LAD-NRO/GN/2025/254, Dated: 11.08.2025

Amendment to SEBI (Foreign Portfolio Investors) Regulations, 2019
The Securities and Exchange Board of India (SEBI) has introduced an amendment to the SEBI (Foreign Portfolio Investors) Regulations, 2019, focusing on the general obligations and responsibilities of Foreign Portfolio Investors (FPIs). The change specifically targets Regulation 22(1), which outlines the compliance framework and duties for FPIs operating in Indian markets.

Exemption for Government Securities-Only Investors
A new proviso has been inserted in Regulation 22(1), providing that these general obligations and responsibilities will not apply to FPIs who invest exclusively in Government Securities. This targeted exemption aims to simplify compliance requirements for such investors, recognising the lower regulatory risk profile associated with government debt instruments.

Rationale Behind the Change
By narrowing the scope of obligations for FPIs that deal only in Government Securities, SEBI intends to reduce the compliance burden and encourage more participation in India’s sovereign debt market. This aligns with broader policy measures to attract stable, long-term foreign investments in government debt instruments.

Effective Date of Implementation
The amendment will come into effect on the 180th day from the date of its publication in the Official Gazette. This transition period provides affected FPIs with adequate time to review their investment structures, assess compliance impacts, and make necessary adjustments to benefit from the new regulatory relief.

Click Here To Read The Full Notification 

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied