Low-Risk FPI
SEBI looking to further ease rules for low-risk FPI categories, says Narayan
This story was originally published at 18:15 IST on 21 August 2025
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NEW DELHI – The Securities and Exchange Board of India is exploring the possibility of further easing norms for investment by foreign portfolio investors who are already exempt from granular-level disclosures, Ananth Narayan G., whole-time member of the market regulator, said Thursday at a conference hosted by the Federation of Indian Chambers of Commerce & Industry in Mumbai.
SEBI is "looking to see if what was intended as a criteria for risk-based relief from onerous regulations, can now be flipped more positively, as a qualification to obtain a kind of 'diplomatic passport' to invest more easily in our markets," Narayan said.
He said SEBI has "now proposed" a single window automatic & generalised access for trusted FPI which could cover "as much as 70% of FPI assets under management." For these FPIs, it could effectively and eventually mean easier registration, lighter ongoing compliance, and wider market access on par with large domestic institutional investors, Narayan said.
In August 2023, SEBI had brought in new rules that required FPIs holding more than 50% of their equity assets in a single Indian corporate group to make additional disclosures on the end-investors in their funds. Narayan said SEBI had mandated these FPIs "give us granular details of all individuals, to the last cent, who own, control, or have any economic interest in the fund."
Later, according to Narayan, SEBI applied risk-based parameters and provided exemptions from these onerous disclosures "to certain objectively identified funds on a strict trust-but-verify basis," which included sovereign wealth funds and regulated public retail funds. The whole-time member said SEBI is also developing an FPI portal which will provide clarity and transparency to existing and prospective foreign investors around India's regulatory regime. End
Reported by Rajesh Gajra
Edited by Ashish Shirke
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