The Securities and Exchange Board of India (SEBI) has relaxed compliance requirements for Foreign Portfolio Investors (FPIs) that invest exclusively in government securities. Under the amended guidelines, these FPIs are no longer required to disclose their investor group details.
The change follows an RBI circular that abolished concentration limit requirements for holdings in government securities. SEBI’s amendment aligns with that RBI move by easing related disclosure norms for qualifying FPIs.
The updated rules take immediate effect, simplifying the investment process for FPIs focused on government debt and potentially facilitating greater participation in India’s government securities market.
Impact on stakeholders: The relaxation reduces regulatory burdens for FPIs dedicated to G-Sec investments, potentially facilitating smoother onboarding and ongoing compliance for foreign participation in government debt markets.
