In a move aimed at boosting India’s appeal as a global investment destination, the Securities and Exchange Board of India (Sebi) has unveiled a single-window access system to simplify market entry for low-risk foreign investors. The new framework — Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI) — is designed to streamline compliance, consolidate registrations, and reduce documentation requirements for such entities.
Under the SWAGAT-FI system, low-risk foreign investors such as government-owned funds, sovereign wealth funds, central banks, multilateral agencies, highly regulated public retail funds, insurance firms, and pension funds will be able to invest in Indian securities with greater ease.
According to two notifications issued on December 1, the regulatory amendments enabling SWAGAT-FI apply to both Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs). The changes will officially take effect from June 1, 2026, following Sebi’s board approval in September.
One of the key reforms under the framework is that SWAGAT-FIs registered as FPIs will now have the option to register simultaneously as FVCIs without submitting additional documentation. This dual registration will allow them to invest in listed equity and debt instruments as FPIs and also participate in unlisted startups and companies in specified sectors as FVCIs.
To further enhance ease of compliance, Sebi has also increased the periodicity for renewal of registration — including payment of fees and KYC review — from the current 3 or 5 years to a 10-year cycle.
In another reform supporting foreign investment, Sebi has allowed retail schemes in International Financial Services Centres (IFSCs) with a resident Indian sponsor or fund manager to register as FPIs. Currently, only Alternative Investment Funds (AIFs) in IFSCs with Indian sponsors or managers are permitted FPI registration.
Sebi also addressed inconsistencies between its regulations and those of the International Financial Services Centres Authority (IFSCA) regarding sponsor contributions. Going forward, sponsor contributions by resident Indian non-individuals in IFSC-based funds will be capped at 10% of the fund’s corpus (or Assets Under Management for retail schemes).
As of June 30, 2025, India had 11,913 registered FPIs holding assets worth ₹80.83 lakh crore. SWAGAT-FIs are estimated to account for more than 70% of total FPI assets under custody, according to Sebi.