Sebi proposes single-window gateway for trusted foreign investors

The Securities and Exchange Board of India (Sebi) has proposed a single-window gateway for trusted foreign investors. The window will be called SWAGAT-FI— single window automatic & generalised access for trusted foreign investors.

 

The move aims to boost foreign investment and simplify regulatory compliance.

 

SWAGAT-FI is designed to make India’s capital markets more accessible to a select group of foreign investors objectively verified as low-risk.

 

The initiative targets government-owned funds, central banks, sovereign wealth funds, multilateral entities, and highly regulated public retail funds, which currently contribute over 70 per cent of foreign portfolio investors’ (FPI) assets under custody. These entities are recognised globally for their transparency, diversified ownership, and long-term investment horizons. 

 

SWAGAT-FI aims to provide eligible investors a streamlined, single-window registration process for both FPIs and Foreign Venture Capital Investors (FVCIs), reducing paperwork, cost, and regulatory complexity. Existing FPIs meeting SWAGAT-FI criteria will also be allowed to opt in for easier compliance.

 

The proposal recommends extending the review and fee-payment cycle for registrations and KYC updates to 10 years, up from the current three- or five-year periods. Continuous disclosure of material changes will remain mandatory.

 

Investors can, optionally, hold all their investments—whether acquired as FPI, FVCI, or through alternative investment vehicles—in a single demat account, improving efficiency and reducing duplication. Depositories will tag investments to ensure regulatory supervision.

 

Restrictions on aggregate contributions from Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and resident Indians will be removed for eligible SWAGAT-FI funds, particularly benefiting mutual funds with diversified retail bases.

 

Sebi has said such a lighter regulatory touch approach for low-risk entities aligns with international standards, enhancing India’s positioning as a premier investment destination.

 

As of June 30, 2025, India had 11,913 registered FPIs, collectively holding assets valued at Rs 81 trillion, up from Rs 51 trillion in March 2022.