SWAGAT-FI: Sebi introduces framework to ease FPI onboarding and compliance
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The Securities and Exchange Board of India (Sebi) on Friday announced a slew of measures aimed at easing foreign investor access to the Indian capital markets, lowering operational and compliance costs, simplifying onboarding processes, and enhancing transparency in the mutual fund industry.
The move comes at a time when the Indian equity market is witnessing sustained outflows from foreign portfolio investors (FPIs), who have withdrawn ₹2,40,800 crore ($27.4 billion) in the past one year.
As part of the move, Sebi has further streamlined the onboarding framework for FPIs and foreign venture capital investors (FVCIs) under its recently introduced single-window system—SWAGAT-FI (Single Window Automatic and Generalised Access for Trusted Foreign Investors). The framework is aimed at simplifying registration, lowering compliance requirements, and improving ease of doing business for large, well-regulated foreign investors.
Under the new framework, Sebi has issued circulars enabling a unified registration process across multiple investment routes and minimising repeated documentation and compliance requirements for eligible investors. The benefits will be available to both existing and new FPIs that meet the specified eligibility criteria.
“These benefits can be availed by existing as well as new FPIs that meet specified eligibility criteria. FPIs registered with Sebi such as central banks, sovereign wealth funds, appropriately regulated and broad based mutual funds, insurance companies and pension funds will be the beneficiaries of these changes,” the regulator notified on Friday.
January 2026
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Sebi-registered entities such as central banks, sovereign wealth funds, appropriately regulated and broad-based mutual funds, insurance companies and pension funds are expected to be the key beneficiaries of the SWAGAT-FI framework. The provisions of the circulars will come into effect from June 1, 2026.
“This key measure would reduce regulatory complexity and enhance India’s global competitiveness as an investor-friendly destination,” the release noted.
Simplified onboarding and longer validity
The move follows amendments to the Sebi (Foreign Portfolio Investors) Regulations, 2019 and the Sebi (Foreign Venture Capital Investors) Regulations, 2000, which were carried out earlier to introduce the SWAGAT-FI concept and simplify onboarding and ongoing compliances.
Sebi has accordingly modified the FPI Master Circular, issued on January 16, 2026, to incorporate the operational details of the framework.
Under the revised norms, several categories of entities are eligible for registration as SWAGAT-FI foreign portfolio investors. These include government or government-related investors. They also include appropriately regulated mutual funds or unit trusts that are open to retail investors and operate as blind pools. Appropriately regulated insurance companies investing their own funds without segregated portfolios are also eligible. Similarly, appropriately regulated pension funds qualify under the framework.
In addition, public retail funds set up in identified jurisdictions and regulated by recognised statutory authorities will be eligible, subject to conditions specified in standard operating procedures framed by custodians and designated depository participants (DDPs) in consultation with Sebi.
Foreign portfolio investors that meet the eligibility criteria can convert to SWAGAT-FI status by applying through their respective DDPs.
Key compliance relaxations
Under the framework, SWAGAT-FI FPIs will enjoy a longer registration validity of 10 years, compared with the standard three-year block for other FPIs. Additionally, the periodicity of KYC review for SWAGAT-FI entities has been extended to 10 years, significantly reducing compliance frequency.
Depositories will also facilitate a single unified accounting and investing experience, allowing SWAGAT-FI entities to maintain securities acquired as FPIs, FVCIs or other eligible foreign investor routes in a consolidated manner.
Sebi has directed depositories, custodians and DDPs to make the necessary system-level changes to implement the framework within the stipulated timeline.