Archive · 19 May 2025
Sebi Proposes Easing Rules for FPIs Investing in Indian Bonds
Imagine India wants more people to invest in its government bonds, like when you save your allowance.
Right now, some rules make it a bit tricky for investors from other countries.
The financial regulator, Sebi, is suggesting some changes.
They want to create a special group of investors (IGB-FPIs) who only buy these bonds.
For this group, Sebi wants to simplify things like registration and some rules about who can invest.
They might even let people from India who live abroad invest more freely.
The goal is to make it easier and more attractive for foreign investors to buy Indian bonds, which should help India.
Sebi proposes relaxed rules for Foreign Portfolio Investors (FPIs) investing in Indian government bonds (IGBs).
The move aims to attract more long-term bond investors to India.
Proposed changes include easing registration and compliance for a new category of FPIs called IGB-FPIs.
Restrictions on NRI/OCI/Resident Indian investments in IGB-FPIs may be removed.
Sebi seeks public comments on the proposals until June 3, 2025.
- Who
- Securities and Exchange Board of India (Sebi)
- What
- Sebi proposed to ease regulatory compliance for FPIs investing in Indian government bonds.
- When
- Proposals were made on Tuesday and public comments are invited until June 3, 2025.
- Where
- India
- Why
- To attract more long-term bond investors.
- FPIs
- Foreign Portfolio Investors
- IGBs
- Indian Government Bonds
- VRR
- Voluntary Retention Route
- FAR
- Fully Accessible Route
- FPI investment in FAR-eligible bonds
- Over Rs 3 lakh crore (USD 35.7 billion) by March 2025