Archive · 3 Dec 2025
SEBI Launches SWAGAT-FI for Easier Foreign Investment
SEBI has introduced a new system called SWAGAT-FI to make it easier for certain foreign investors to put their money into Indian markets.
This system allows these investors to go through a single, unified process to register and comply with rules.
The investors included in this system are considered low-risk and include government funds, central banks, and pension funds.
The new rules will start from June 1, 2026.
SEBI has also made it easier for these investors to manage their registrations and compliance by increasing the registration period to 10 years.
Additionally, SEBI has clarified rules for investors operating from International Financial Services Centres (IFSCs) to make it easier for them to do business.
As of now, there are 11,913 registered foreign investors in India, holding assets worth ₹80.83 lakh crore, with SWAGAT-FIs contributing more than 70% of these assets.
SEBI introduced the SWAGAT-FI framework to simplify compliance for low-risk foreign investors.
The framework will provide a unified registration process and reduce repeated compliance and documentation.
Low-risk foreign investors include government-owned funds, central banks, sovereign wealth funds, and pension funds.
The new regulations will come into force on June 1, 2026, following amendments to FPI and FVCI regulations.
SEBI increased the registration periodicity to 10 years and clarified rules for investors operating from IFSCs.
- Who
- SEBI (Securities and Exchange Board of India)
- What
- Introduction of the SWAGAT-FI framework for low-risk foreign investors
- When
- Effective from June 1, 2026
- Where
- India
- Why
- To simplify compliance and enhance India's attractiveness as an investment destination
- Framework Name
- Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI)
- Effective Date
- June 1, 2026
- Low Risk Investors
- Government-owned funds, central banks, sovereign wealth funds, multilateral entities, highly regulated public retail funds, appropriately regulated insurance companies, and pension funds
- Current FPIs
- 11,913
- Assets Held by FPIs
- ₹80.83 lakh crore (as of June 30, 2025)
- SWAGAT-FIs Contribution
- More than 70% of total FPIs' assets under custody
- Registration Periodicity
- 10 years (increased from 3-5 years)
- Sponsor Contribution Limit
- Maximum of 10% of corpus of the Fund (or assets under management in case of retail schemes)
