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The Board approved the introduction of the Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework for FPIs and Foreign Venture Capital Investors (FVCIs) with the following objectives:

  • Facilitate easier investment access for objectively identified and verifiably low-risk foreign investors.
  • Enable a unified registration process across multiple investment routes for these entities.
  • Minimize repeated compliance requirements and documentation for such investors.

Purpose and Benefits

The SWAGAT-FI framework aims to unify, streamline, and standardize access for select categories of foreign investors who meet specified eligibility criteria. This initiative seeks to reduce regulatory complexity, simplify compliance, and enhance India’s global competitiveness as an investor-friendly destination.

Eligible Categories of SWAGAT-FIs

Foreign investors eligible for identification as SWAGAT-FIs include:
  • Government and government-related investors, such as central banks, sovereign wealth funds (SWFs), international or multilateral organizations/agencies, and entities controlled or at least 75% owned (directly or indirectly) by such entities.
  • Appropriately regulated Public Retail Funds (PRFs) with diversified investors and investments, managed independently and regulated by their home jurisdiction, including:
    • Mutual funds and unit trusts open to retail investors, operating as blind pools with diversified investments and independent investment managers.
    • Insurance companies investing proprietary funds without segregated portfolios.
    • Pension funds regulated in their home jurisdictions.

Registration and Eligibility

Eligible FPI applicants may opt for SWAGAT-FI identification at the time of initial registration. Existing FPIs meeting eligibility criteria may also convert to SWAGAT-FI status. SEBI will publish jurisdiction-wise lists of eligible fund structures based on a trust-but-verify approach aligned with the exemptions under the Additional Disclosure Framework dated August 24, 2023.

Relaxations for SWAGAT-FIs

SWAGAT-FIs will be entitled to the following relaxations:

  • Option to register as FVCI without additional documentation, if already registered or applying as FPIs.
  • Exemption from the FVCI Regulation requiring at least 66% investment in eligible unlisted assets.
  • Registration validity, KYC review, and fee payment (USD 2,500) to be applicable for a 10-year block instead of the standard 3-year cycle.
  • Exemption from the 50% aggregate contribution cap applicable to Non-Resident Indians, Overseas Citizens of India, and Resident Indian individuals in FPIs.
  • Option to use a single demat account for holding all securities acquired as FPI, FVCI, or foreign investor units, with systems in place to ensure proper tagging and identification across channels.

Implementation Timeline

Given the necessary system and process modifications, a six-month timeframe has been provided for the full implementation of the SWAGAT-FI framework.

  • The SEBI Board approved the following proposals aimed at enhancing the ease of doing business for FPIs operating from IFSCs:

    • Registration of Retail Schemes as FPIs

    Currently, Alternative Investment Funds in IFSCs with a resident Indian sponsor or manager are permitted to register as FPIs. Expanding this framework, the Board has now approved a proposal to also allow retail schemes in IFSCs with a resident Indian sponsor or manager, to register as FPIs.

    Alignment of Contribution Limits with IFSCA Regulations

    Hitherto, the limits on sponsor contribution by resident Indian non-individuals in funds set up in IFSC, as specified by SEBI and IFSCA, were at variance, leading to the risk of non-compliance by such entities. To address this, the Board approved a proposal to amend SEBI FPI Regulations 2019, so that such sponsor contributions shall now be subject to a maximum of 10% of corpus of the Fund (or AUM, in case of retail schemes).

  • Operationalisation of Investment by Indian Mutual Funds in Overseas MFs/UTs

    • SEBI, via its circular dated November 4, 2024, permitted Indian mutual fund schemes to invest in overseas Mutual Funds or Unit Trusts (MFs/UTs) that have exposure to Indian securities, subject to specified conditions. In order to operationalise this framework, the Board approved amendments to the FPI Regulations 2019, so that overseas MFs/UTs registered as FPIs shall now be permitted to include Indian mutual funds as constituents, subject to the conditions of the aforementioned circular.

SEBI Board approves a proposal to relax regulatory compliances for FPIs investing only in Government Securities (G-Secs) to facilitate ease of doing business.

  • To enhance ease of doing business through a risk-based approach and optimum regulation, the Board approved the proposal to relax certain regulatory requirements for all existing and prospective FPIs that exclusively invest in G-Secs (hereinafter referred to as “GS-FPI”). These measures are expected to further help in facilitating investments by FPIs in G-Secs.
  • Several global index providers have announced inclusion of G-Secs in their respective bond indices, viz., J P Morgan Global EM BondIndex (starting June, 2024), Bloomberg EM Local Currency Government Index (starting January, 2025) and FTSE Russell Emerging Markets Government Bond Index (starting September, 2025). FPI investment in FAR eligible securities has seen a significant increase and has crossed ₹3 lakh crore mark in March 2025.
  • Certain regulatory requirements specified for FPIs under the FPI Regulations, 2019 and circulars issued thereunder are applicable to FPI investments into equity and corporate bonds, and not relevant for investments in G-Secs. In this context, the below mentioned relaxations are expected to give a fillip to FPIs’ investment in government securities. These proposals have been formulated after following due consultation process, taking into account the inputs/recommendations of stakeholders through consultation paper dated May 13, 2025 and that of the FPI Advisory Committee.
  • The Board has approved the following relaxations for GS-FPIs:
    • The periodicity of mandatory KYC review for GS-FPIs shall be harmonized with RBI’s requirements. GS-FPIs will therefore have less frequent mandatory KYC reviews.
    • Existing and prospective FPIs that exclusively invest in G-Secs under the Fully Accessible Route (FAR) shall not be required to furnish investor group details. Such details are largely relevant for monitoring FPI exposures into equity and corporate debt only.
    • Non-resident Indians, Overseas Citizens of India and Resident Indians individuals shall be permitted to be constituents of GS-FPIs without any restrictions applicable to other FPIs, including being in control of GS-FPI. The conditions regarding participation of RIs, viz. contribution through the Liberalised Remittance Scheme and in global funds whose Indian exposure is less than fifty percent, shall continue to apply.
    • GS-FPIs shall be permitted to intimate all material changes within 30 days (instead of 7 days).
    • Identification as GS-FPI at the time of onboarding, and transition of existing as well as prospective FPIs to GS-FPIs and vice-versa, shall be subject to conditions as may be specified by SEBI from time to time.

You can access the current set of Discussion Papers/reports that are open for public consultation at SEBI’s website
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