SEBI eases compliance norms for FPIs investing exclusively in government securities
Under the revised framework, FPIs investing only in government securities will not be required to provide investor group details, irrespective of the route through which they invest. The change has come into effect immediately.
SEBI had introduced a similar exemption in September 2025 for FPIs investing exclusively in government securities through the Fully Accessible Route (FAR). The latest circular extends the relaxation to all FPIs investing only in government securities, including those using the General Route.
The latest move follows the Reserve Bank of India's 5 June 2026 decision to remove the short-term investment, security-wise and concentration limits applicable to FPI investments in government securities under the General Route. With the concentration limit withdrawn, SEBI said identification of an investor group for an FPI investing only in government securities was no longer relevant.
The RBI had also expanded the Fully Accessible Route by including new issuances of 15-year, 30-year and 40-year government securities. The measures form part of broader efforts to ease access to India's sovereign debt market and attract foreign capital.
SEBI has directed depositories, custodians and Designated Depository Participants (DDPs) to make the necessary system changes to implement the revised framework.
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