The Securities and Exchange Board of India (Sebi) has announced significant changes to make it easier for Foreign Portfolio Investors (FPIs) to invest in Indian government securities (G-Secs). These relaxations aim to streamline the onboarding process and foster a more welcoming investment climate.
Key changes include aligning Know Your Customer (KYC) timelines with Reserve Bank of India (RBI) norms. This simplification reduces bureaucratic hurdles and accelerates the investment process. Furthermore, Sebi has eliminated the requirement for investor group disclosure for those entering via the Foreign Account Registration (FAR) route, further easing compliance burdens.
Another notable adjustment allows Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) to participate in G-Sec investments, subject to specific restrictions. This broader inclusion is expected to attract a wider range of investors.
These regulatory improvements reflect India’s commitment to attracting foreign investment and strengthening its financial markets. The simplified compliance measures are intended to make investing in Indian G-Secs more efficient and accessible for international investors.