Sebi proposes SWAGAT-FI to simplify foreign investor market access.
Single-window registration for low-risk FPIs and FVCIs to cut compliance.
Review, KYC update cycle extended to 10 years for eligible entities.
NRIs/OCIs investment limits eased; single demat allowed for all holdings.
The Securities and Exchange Board of India (Sebi) has proposed a single-window gateway called SWAGAT-FI for trusted foreign investors, in a move aiming to boost foreign investment and simplify regulatory compliance.
The gateway has been designed to make India’s capital markets more accessible to a select group of foreign investors objectively verified as low-risk. It will target government-owned funds, central banks, sovereign wealth funds, multilateral entities, and highly regulated public retail funds, which currently contribute over 70 per cent of foreign portfolio investors’ (FPI) assets under custody.
These entities are recognised globally for their transparency, diversified ownership as well as long-term investment horizons.
According to a Business Standard report, SWAGAT-FI aims to provide eligible investors a streamlined, single-window registration process for both FPIs and Foreign Venture Capital Investors (FVCIs), reducing paperwork, cost, and regulatory complexity. The existing FPIs meeting SWAGAT-FI criteria will also be permitted to opt in for easier compliance.
In addition to that, the proposal recommends extending the review and fee-payment cycle for registrations and KYC updates to 10 years. This will be higher from the current three- or five-year periods and continuous disclosure of material changes will remain compulsory.
Investors also have the option to hold all their investments - whether acquired as FPI, FVCI, or through alternative investment vehicles—in the form of a single demat account, improving efficiency and reducing duplication. Besides, depositories will tag investments to ensure regulatory supervision.
Additionally, the restrictions on aggregate contributions from Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) as well as resident Indians will be removed for eligible SWAGAT-FI funds, mainly benefiting mutual funds with diversified retail bases.
The central board has also noted that such a lighter regulatory touch approach for low-risk entities will align with international standards thereby enhancing India’s positioning as a premier investment destination.
As of June 30, 2025, India had 11,913 registered FPIs, collectively holding assets valued at Rs 81 trillion, up from Rs 51 trillion in March 2022.
