Archive · 30 Sep 2025
Government Funds Increase Investment in Indian Equities
Government-backed investment groups like pension funds and sovereign wealth funds are investing more money in India's stock market.
These investors are seen as reliable, long-term players.
The Securities and Exchange Board of India (SEBI) is making it easier for these investors to put money in India by simplifying rules.
This includes making it easier to register and follow the rules, which should encourage more foreign investors to invest in both listed and unlisted companies.
While the overall market has seen net sales recently, overall FPI assets have grown significantly in the past five years, mainly due to domestic investments.
Sovereign wealth funds and pension funds have shown higher growth in equity assets under custody compared to other FPIs.
FPI assets have grown 139.5% since August 2020.
Sebi is making it easier for certain FPIs to invest in India.
The SWAGAT-FI framework reduces regulatory complexity and simplifies compliance.
The move is expected to be implemented over the next six months.
- Who
- Sovereign wealth funds, pension funds, other Foreign Portfolio Investors (FPIs), and SEBI
- What
- Increased investment by government-controlled entities and regulatory changes to attract more foreign investment
- When
- Over the past five years, the changes are expected to be implemented over the next six months.
- Where
- India
- Why
- To simplify compliance, enhance India’s global competitiveness, and attract more foreign investment
- FPI Asset Growth (since August 2020)
- 139.5%
- Sovereign Wealth Fund Growth
- 155.2%
- New FPI Registrations (first 4 months)
- 90
- Total Registered FPIs
- 12,164
- FPI Net Sales (2025-26)
- Rs 20,877 crore
- Mutual Fund Purchases (2024-25)
- Rs 4.79 trillion
