Securities and Exchange Board of India (Sebi) Introduces SWAGAT-FI Framework for Low Risk Foreign Investors

Key facts

• Securities and Exchange Board of India (Sebi) introduced the SWAGAT-FI framework for Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs) through two separate notifications dated December 1.
• The new framework is named Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI).
• SWAGAT-FI provides easier investment access to low risk foreign investors, enables a unified registration process, and reduces repeated compliance and documentation.
• Sebi identified low risk foreign investors as government-owned funds, central banks, sovereign wealth funds, multilateral entities, highly regulated public retail funds, appropriately regulated insurance companies, and pension funds.
• Sebi amended FPIs and FVCIs regulations, which will come into force on June 1, 2026.
• Under the new framework, Sebi granted an option to SWAGAT-FIs applying for registration or already registered as FPIs to also register as FVCI without further documentation.
• Registration under both FPI and FVCI regulations enables SWAGAT-FIs to invest in listed equity instruments and debt securities as FPI, and in unlisted Indian companies and startups as FVCI.
• Sebi increased the periodicity for continuance of registration, including payment of fee and review of KYC documentation, to 10 years.
• Sebi allowed retail schemes in International Financial Services Centres (IFSCs) with a resident Indian sponsor or manager to register as FPIs.
• Sebi amended FPI Regulations to subject sponsor contributions to a maximum of 10 percent of the fund's corpus or assets under management for retail schemes.
• As of June 30, 2025, India had 11,913 registered FPIs holding assets worth ₹80.83 lakh crore.
• SWAGAT-FIs are estimated to contribute more than 70 percent of total FPIs' assets under custody.