Archive · 6 Dec 2025
SEBI Proposes Overhaul of FPI Framework
The Securities and Exchange Board of India (SEBI) has proposed a major update to the rules for Foreign Portfolio Investors (FPIs).
This update aims to make it easier for global investors to register and comply with Indian market regulations.
SEBI suggests simplifying the registration process, especially for certain types of funds, by allowing them to use a shorter application form.
The proposal also includes clearer rules for identifying who owns the investments (KYC) and ensures that different types of investors follow the right procedures.
SEBI wants to make sure the process is both easier and more secure.
They are asking for public comments on these changes by December 26, 2025.
SEBI proposes a comprehensive overhaul of the FPI framework to streamline registration and simplify compliance.
Introduction of an abridged application option for certain categories of FPIs, including related funds and sub-funds.
Simplified KYC and beneficial-owner identification rules for NRIs, OCIs, and resident Indians.
Dedicated frameworks for specific FPI categories like government securities investors, IFSC-based FPIs, and pension funds.
Public comments on the proposals are sought until December 26, 2025.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Proposed overhaul of the Foreign Portfolio Investor (FPI) framework
- When
- Consultation paper released on December 6, 2025
- Where
- India
- Why
- To enhance ease of doing business and simplify compliance requirements for global investors
Streamlining Process
Ensuring Compliance
Registration Process
Streamlining Process
Introduce an abridged application option for related funds to simplify the process.
Ensuring Compliance
Ensure due diligence and verification of details to maintain compliance.
KYC and Beneficial Owner Identification
Streamlining Process
Simplify KYC requirements for NRIs, OCIs, and resident Indians.
Ensuring Compliance
Introduce dedicated frameworks for specific FPI categories to ensure proper identification and compliance.
- Regulator
- Securities and Exchange Board of India (SEBI)
- Consultation Paper Date
- December 6, 2025
- Public Comments Deadline
- December 26, 2025
- Simplified Registration Categories
- Funds managed by registered investment managers, sub-funds of existing master funds, segregated share classes, and insurance schemes linked to registered entities
- Application Options
- Complete Common Application Form (CAF) or use an abridged version
- Due Diligence Requirements
- Verification of PAN details, country of residence, regulatory status, and other eligibility norms
- Compliance Standards
- Uniform compliance and reporting standards for custodians and DDPs
Sources
Sebi plans revision of position limits for trading members in index derivatives
Sebi’s new FPI overhaul: What the regulator has proposed in its consultation paper
SEBI aims to ease FPI registration process; floats consultation paper
