The Securities and Exchange Board of India (SEBI) has simplified compliance requirements for Foreign Portfolio Investors (FPIs) whose investments are limited exclusively to government securities. Under the revised framework, such FPIs will no longer be required to submit investor group details to the regulator. The relaxation has taken effect immediately and is intended to facilitate smoother participation by foreign investors in India’s government securities market.
SEBI introduced the change through a circular issued on September 7, 2026, amending the relevant provision of its Master Circular governing FPIs, Designated Depository Participants (DDPs) and Eligible Foreign Investors. The regulatory change follows a June 5, 2026 circular issued by the Reserve Bank of India (RBI). The RBI had removed the prescribed concentration-limit requirement for FPIs investing in government securities through the General Route.
According to SEBI, once the concentration-limit requirement was withdrawn, obtaining investor group information from an FPI investing solely in government securities was no longer considered necessary.
Previously, SEBI had provided a similar exemption in September 2025 for FPIs investing exclusively in government securities through the Fully Accessible Route (FAR). The latest amendment expands the relief by covering FPIs investing only in government securities regardless of the investment route used.
SEBI has instructed depositories, custodians and Designated Depository Participants to make the required system-level changes to implement the amended compliance framework.
The revised provision is effective from the date of the circular, providing immediate regulatory relief to eligible FPIs investing exclusively in government securities. CASansaar