Framework further simplified to onboard FPIs under SWAGAT-FI

Framework further simplified to onboard FPIs under SWAGAT-FI

An eligible SWAGAT-FI (Single Window Automatic & Generalised Access for Trusted Foreign Investors) applicant can apply for FVCI registration without submitting separate application forms or documents, provided the same custodian and designated depository participant (DDP) are appointed for both registrations under the revised framework as per two separate circulars issued by SEBI.

Under the single window access system, markets regulator Sebi has simplified operational guidelines for onboarding Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs), along with compliance requirements.

An eligible SWAGAT-FI (Single Window Automatic & Generalised Access for Trusted Foreign Investors) applicant can apply for FVCI registration without submitting separate application forms or documents, provided the same custodian and designated depository participant (DDP) are appointed for both registrations under the revised framework as per two separate circulars issued by SEBI.

Existing FVCIs that meet SWAGAT-FI eligibility can also convert to SWAGAT-FI status by applying through their DDP under the same condition.

Renewal requirements for FVCIs have been streamlined, with SWAGAT-FI FVCIs required to renew their registration every 10 years, instead of five, along with payment of fees and intimation of any changes in information; SEBI said.

The KYC review’s periodicity for SWAGAT-FI FVCIs has also been extended to 10 years.

The FPI Master Circular has been amended to incorporate the SWAGAT-FI framework, whereby certain contribution-related restrictions do not apply subject to specific conditions for resident Indian contributions through the Liberalised Remittance Scheme (LRS).

Eligible SWAGAT-FI FPIs are defined by the framework as including government and government-related investors, appropriately regulated retail mutual funds, insurance companies investing proprietary funds, and pension funds, subject to prescribed safeguards. By applying to their DDP, FPIs meeting eligibility criteria may convert to SWAGAT-FI status.

In addition, depositories are required to enable a unified investment and accounting experience for SWAGAT-FI investors, allowing securities held as FPIs, FVCIs, or other eligible foreign investors to be maintained seamlessly.

Sebi said that the new provisions will come into effect from June 1, 2026.