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Informist, Friday, Oct. 30, 2026

 

--SEBI: To ease KYC norms for FPIs to cut compliance burden 

--SEBI: Eased KYC norms for FPIs effective Dec 1 

 

MUMBAI – The Securities and Exchange Board of India Friday eased the know-your-customer review periodicity norms for foreign portfolio investors, cutting down paperwork for foreign investors in India. The market regulator has increased the know-your-customer review period for foreign portfolio investors to two to eight years, up from as low as one year currently, depending on the risk profile of the foreign investor. 

 

FPIs are broadly classified into Category I and Category II based on their regulatory status, the nature of their investors and associated risks. Category I includes investors such as government-related entities, appropriately regulated funds and certain institutional investors that are considered to have a relatively lower risk profile. Category II covers a wider range of investors, including appropriately regulated entities and other eligible funds and institutions that do not qualify for Category I.

 

For high-risk Category I FPIs, the review period has been extended to eight years. High-risk Category II investors will have to undergo reviews once every two years, SEBI said.

 

For non-high-risk investors, the review period will be eight years for Category I FPIs. Within Category II investors, regulated entities will also get an eight-year review cycle, while other investors will continue to undergo reviews every two years. 

 

However, the time period for Single Window Automatic and Generalised Access for Trusted Foreign Investors will remain unchanged at 10 years, SEBI added. The regulator also made no changes to the norms for FPIs investing in government securities. 

 

"The measure seeks to rationalise multiple requirements of similar nature, reduce repetitive compliance and ease the compliance burden on FPIs, thereby promoting ease of doing business," SEBI said. The proposed changes are set to be effective from Dec. 1, the market regulator said.  End

 

Reported by Adhithya Aji and Priyasmita Dutta 

Edited by Akul Nishant Akhoury

 

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