SEBI proposes simplified norms for low-risk FPIs

  • Blog|News|Company Law|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 12 August, 2025

Latest from Taxmann

SEBI low-risk FPIs simplified norms onboarding process compliance relaxation SWAGAT-FIs Foreign Venture Capital Investors FVCI registration

Consultation Paper Dated 08.08.2025

SEBI Issues Consultation Paper on Easing FPI Investments

The Securities and Exchange Board of India (SEBI) has released a Consultation Paper inviting public comments on a set of proposals aimed at making it easier for low-risk Foreign Portfolio Investors (FPIs) to invest in India. The key objective is to simplify onboarding procedures and reduce compliance requirements for specific categories of FPIs, such as government-owned funds and regulated public retail funds, which are generally considered low-risk.

Simplified Registration for SWAGAT-FIs

One of the significant proposals in the Consultation Paper is to allow SWAGAT-FIs (Sovereign Wealth Funds, Government-Affiliated Trusts, and other similar entities) to register as Foreign Venture Capital Investors (FVCIs) without the need to submit additional documents. This measure is expected to reduce procedural delays and improve ease of access for such entities looking to participate in the Indian investment ecosystem.

Extended Compliance Timelines

In another investor-friendly step, SEBI has proposed extending the timelines for various regulatory requirements applicable to SWAGAT-FIs. This includes granting a 10-year period for registration continuance, payment of applicable fees, and completion of the Know Your Customer (KYC) review process. The extended timelines aim to enhance operational flexibility and promote long-term investment commitments.

Public Feedback and Next Steps

SEBI has invited stakeholders, market participants, and the general public to submit their comments and suggestions on the proposed measures. The feedback will be reviewed and considered before finalising the regulatory changes. This initiative is part of SEBI’s ongoing efforts to streamline the investment process, reduce unnecessary compliance burdens, and attract more foreign capital into the Indian markets.

Click Here To Read The Full Update

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann editorial team

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

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

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