Sebi Eases FPI Rules for G-Secs Investment
Sebi, India's markets regulator, has simplified rules for Foreign Portfolio Investors (FPIs) investing solely in Indian government securities. This change aims to attract more long-term bond investors by easing compliance, reducing KYC frequency, and facilitating investment. These measures align with India's growing debt market interest and major global bond index inclusions.
- Country:
- India
Sebi, the Indian markets regulator, announced a series of regulatory updates on Wednesday designed to simplify and reduce compliance requirements for Foreign Portfolio Investors (FPIs) investing exclusively in Indian government securities (G-Secs).
This initiative is intended to attract more long-term investors to India's burgeoning debt market. It simplifies the complex scenario where foreign investors currently utilize three routes for investing in Indian debt: General, Voluntary Retention Route (VRR), and the Fully Accessible Route (FAR).
Changes include harmonizing the frequency of mandatory KYC reviews with RBI guidelines and allowing certain individuals like Non-resident Indians and Overseas Citizens to become constituents of GS-FPI without previous restrictions. These shifts come amid increased FPI investment in FAR-eligible bonds, reaching significant heights by March 2025.
(With inputs from agencies.)
- READ MORE ON:
- Sebi
- FPI
- G-Secs
- investment
- VRR
- FAR
- KYC
- Securities
- Indian debt
- bond investors
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