SEBI FPI Rules have been eased for foreign portfolio investors that invest exclusively in government securities. Such FPIs will no longer be required to provide details about their investor group.
The market regulator said the change is aimed at reducing regulatory compliance for foreign investors whose investments are limited to government securities. The revised framework comes into effect immediately.
SEBI FPI Rules Remove Disclosure Requirement
Under the earlier framework, FPIs were required to disclose details about their investor group. SEBI has now removed this requirement for FPIs investing solely in government securities.
The relaxation applies specifically to foreign portfolio investors whose investments are restricted to government securities. It does not mean that disclosure requirements have been removed for all categories of FPIs.
RBI’s Earlier Change Led to the Move
The decision follows an earlier regulatory change by the Reserve Bank of India. On June 5, the RBI removed the requirement for FPIs investing in government securities through the normal route to comply with prescribed investment limits.
Following that change, SEBI concluded that requiring these FPIs to disclose the identity of their investor group was no longer relevant.
The regulator has therefore removed the requirement, simplifying the compliance process for eligible foreign investors.
What Changes for Foreign Investors?
The SEBI FPI Rules change means eligible FPIs investing only in government securities will have one less disclosure requirement to complete.
The relief is limited to the investor-group disclosure requirement described by the regulator. Other applicable regulatory requirements for foreign portfolio investors continue to depend on the relevant investment framework.
The change has taken effect immediately, meaning eligible FPIs can benefit from the simplified requirement without waiting for a later implementation date.
