Quote on FPI progress for June trend inputs by Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India
Below the Quote on FPI progress for June trend inputs by Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India
India’s economy continues to stand out as one of the world’s fastest growing and most resilient, backed by strong macroeconomic fundamentals and a vibrant policy landscape. The nation’s regulatory institutions, led by SEBI, have consistently pursued reforms aimed at deepening market participation, enhancing transparency, and simplifying compliance to attract global capital.
In a landmark move to deepen the debt market and provide much needed liquidity; SEBI has announced regulatory relaxations exclusively for FPIs investing in Government Securities (G-Secs) in the recent board meeting. This forward-looking measure arrives on the heels of India’s inclusion in global bond indices like the JP Morgan Global EM Bond Index and Bloomberg EM Local Currency Government Index, which is expected to attract large-scale FPI inflows.
SEBI’s move reduces compliance burdens by harmonising KYC review timelines with RBI norms, exempting GS-FPIs from submitting investor group details, and permitting NRIs, OCIs, and Resident Indians to participate in GS-FPIs with fewer restrictions. Additionally, FPIs now enjoy a more relaxed timeline, i.e., 30 days for disclosing material changes, up from 7 days earlier.
These changes reflect SEBI’s risk-based regulatory approach and are poised to deepen FPI engagement in India’s sovereign debt market. As India’s economic fundamentals remain robust, these progressive measures will strengthen the country’s appeal as a stable and attractive investment destination for global institutional investors.
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