SEBI exempts FPIs investing only in G-secs from investor-group disclosures
Securities and Exchange Board of India (SEBI) said on Monday that foreign portfolio investors that invest money only into Indian government securities will no longer have to disclose investor?group details to regulators.
The move primarily aims to reduce compliance requirements for foreign investors that invest exclusively in government securities.
The SEBI circular announced expansion of an existing exemption that had been limited to FPIs investing through the Fully Accessible Route to cover all FPIs that invest exclusively in government securities.
The regulator said investor?group disclosures, used to identify related investors and monitor breach of concentration limits, had become less relevant after the Reserve Bank of India eased rules for foreign investors in government bonds.
The RBI on June 5, 2026 had withdrawn the requirement for FPIs investing in government securities through the General Route to comply with prescribed concentration limits.
As those limits were no longer applicable, the need to identify investor groups for such investors effectively fell away, the SEBI circular said.
Consequently, the requirement for identification of investor groups by FPIs investing only in government securities felt no longer relevant, the regulator said.
The regulator advised depositories, custodians and Designated Depository Participants to make necessary changes in their systems to effect the proposed changes.
The provisions of this circular shall come into force with immediate effect, the statement noted.
Foreign portfolio investor (FPI) flows into Indian equities are showing signs of turning more consistent, with early indications pointing to continued net inflows in September after positive flows in July and August.
FPIs have remained net buyers of Indian equities during the first four days of September, with net inflows standing at around Rs 2,374 crore.
