SEBI eases FPI norms for international financial services centre funds
This story was originally published at 21:55 IST on 12 September 2025
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--SEBI: Foreign MFs registered as FPIs can include Indian MFs as constituents
NEW DELHI – The Securities and Exchange Board of India has approved amendments to SEBI (Foreign Portfolio Investors) Regulations, 2019, to improve ease of doing business for foreign portfolio investors based in international financial services centres.
At its board meeting Friday, SEBI approved a proposal to allow retail schemes backed by a resident Indian sponsor or manager in international financial services centres to register as foreign portfolio investors. Currently, only alternative investment funds with a resident Indian sponsor or manager in international financial services centres are permitted to register as foreign portfolio investors.
Further, SEBI has approved a proposal to amend the SEBI (Foreign Portfolio Investors) Regulations, 2019, so that sponsor contributions shall now be subject to a maximum of 10% of corpus of the fund, or 10% of the assets under management in case of retail schemes. Earlier, SEBI and the International Financial Services Centres Authority had set different thresholds, resulting in risk of non-compliance by funds.
The SEBI board also approved amendments to SEBI (Foreign Portfolio Investors) Regulations, 2019, so that overseas mutual funds or unit trusts registering as foreign portfolio investors shall now be permitted to include Indian mutual funds as constituents, subject to the conditions laid out in an earlier circular. SEBI, through a circular dated Nov. 4, 2024, had permitted Indian mutual fund schemes to invest in overseas mutual funds or unit trusts that have exposure to Indian securities, subject to specified conditions. End
Reported by Shakshi Jain
Edited by Ashish Shirke
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