Notification F.No. SEBI/LAD-NRO/GN/2025/254, Dated: 11.08.2025
Amendment to SEBI (Foreign Portfolio Investors) Regulations, 2019
The Securities and Exchange Board of India (SEBI) has introduced an amendment to the SEBI (Foreign Portfolio Investors) Regulations, 2019, focusing on the general obligations and responsibilities of Foreign Portfolio Investors (FPIs). The change specifically targets Regulation 22(1), which outlines the compliance framework and duties for FPIs operating in Indian markets.
Exemption for Government Securities-Only Investors
A new proviso has been inserted in Regulation 22(1), providing that these general obligations and responsibilities will not apply to FPIs who invest exclusively in Government Securities. This targeted exemption aims to simplify compliance requirements for such investors, recognising the lower regulatory risk profile associated with government debt instruments.
Rationale Behind the Change
By narrowing the scope of obligations for FPIs that deal only in Government Securities, SEBI intends to reduce the compliance burden and encourage more participation in India’s sovereign debt market. This aligns with broader policy measures to attract stable, long-term foreign investments in government debt instruments.
Effective Date of Implementation
The amendment will come into effect on the 180th day from the date of its publication in the Official Gazette. This transition period provides affected FPIs with adequate time to review their investment structures, assess compliance impacts, and make necessary adjustments to benefit from the new regulatory relief.
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