Sebi removes investor group disclosure requirement for G-Sec-only FPIs
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The Securities and Exchange Board of India (Sebi) on Monday removed the requirement for foreign portfolio investors (FPIs) that invest only in government securities to furnish details of their investor group.
The move is aimed at making it easier for overseas investors to participate in India's government securities market by removing a disclosure requirement that is no longer considered relevant.
Under the revised rules, “FPIs investing only in Government Securities shall not be required to furnish investor group details,” Sebi said in a circular dated September 7.
The change will take effect immediately, with depositories, custodians and designated depository participants (DDPs) directed to make the necessary changes to their systems.
FPIs are overseas investors that put money into Indian financial assets such as shares and bonds. Government securities, or G-Secs, are debt instruments issued by the government to raise money. In simple terms, the latest change means an overseas investor that only buys Indian government bonds will have one less set of group-related details to provide to regulators.
Why Sebi has removed the requirement
The change follows an earlier decision by the Reserve Bank of India (RBI).
In a June 5, 2026 circular, the RBI withdrew the requirement for FPIs investing in government securities through the general route to comply with the prescribed concentration limit. With that requirement removed, Sebi said identifying an FPI's investor group was no longer relevant for investors dealing exclusively in government securities.
Sebi had already eased some compliance requirements for such investors in September 2025. At the time, it said FPIs investing exclusively in government securities through the fully accessible route (FAR) would not have to furnish investor group details.
The latest circular now broadens that relief to all FPIs investing only in government securities, rather than limiting the exemption to those using the FAR.
Push to make G-Sec investment easier
The latest move is part of SEBI's broader effort to simplify the regulatory framework for foreign portfolio investors.
The regulator has issued several measures this year aimed at easing the process of onboarding and operating for FPIs. Sebi's latest circular specifically says the change is being made “with a view to provide greater ease of investment to FPIs.”
For India's government bond market, reducing compliance requirements could make participation simpler for overseas investors, although the circular itself does not estimate the likely impact on foreign inflows or investment volumes.