Markets regulator Sebi on Wednesday announced that foreign portfolio investors (FPIs) investing solely in government securities under the fully accessible route will no longer be required to provide investor group details.In a circular, Sebi said these investors will also be exempted from certain disclosure and reporting requirements applicable to regular FPIs. The changes are intended to streamline procedures and attract more long-term overseas participation in India’s sovereign debt market, PTI reported.The amendments were carried out in August to simplify compliance for this category of investors, and the master circular for FPIs has now been modified to reflect the changes.Under the revised framework, FPIs investing only in government securities (GS-FPIs) will only need to pay fees to their designated depository participants (DDPs) to maintain registration for the next three years. They will not be required to submit periodic declarations unless there are material changes.“In case of no change in information, FPIs will give declaration that there is no change in the information, as previously furnished. However, requirement of giving such declaration will not be applicable to GS-FPIs,” the regulator clarified.Resident Indian individuals can invest in GS-FPIs only through the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India, and such participation will be permitted only in global funds whose Indian exposure is less than 50 per cent, Sebi added.The regulator has also allowed both new and existing FPIs to transition into GS-FPIs by making appropriate declarations. Similarly, GS-FPIs can revert to regular FPI status by meeting additional compliance requirements.Further, GS-FPIs must inform Sebi about any material changes in their structure or operations within 30 days, along with supporting documents where applicable. The periodicity of Know Your Customer (KYC) reviews for GS-FPIs will also be aligned with that of their bank accounts, as prescribed by the RBI.Sebi said the new provisions will come into effect from February 8, 2026. Custodians and designated depository participants standards-setting forum, in consultation with the regulator, have been asked to make the necessary system changes for implementation.
