Sebi digitising FPI onboarding process
Aims to create a best-in-class experience leveraging digital signatures to make it entirely paperless
New Delhi: Markets regulator Sebi is actively working towards the end-to-end digitisation of the Foreign Portfolio Investor (FPI) registration process, leveraging digital signatures to make it entirely paperless, chairman Tuhin Kanta Pandey said on Wednesday.
The aim, he noted, is to sharply cut the registration timeline from months to just a few days, while ensuring that any data-privacy concerns are suitably addressed. To further enhance service quality, Sebi is also enabling a second platform for FPI registrations, currently being developed by CDSL, he added.
This initiative comes at a time when foreign investors continue to play a key role in Indian markets, even as domestic participation grows. Addressing Goldman Sachs' 14th India CIO Conference, Pandey said foreign investors remain central to India's capital markets. Since India opened its doors to FPIs in 1992, portfolio flows have delivered an XIRR (Extended Internal Rate of Return (XIRR) of 9.3 per cent.
As of September 2025, FPIs manage assets worth $876 billion and hold around 17 per cent of the stake in listed companies. XIRR refers to an annualised return rate on an investment. Going forward, Pandey said that Sebi is considering ways to make market access even smoother.
Under the proposed framework, SWAGAT-FIs (Single Window Automatic & Generalised Access for Trusted Foreign Investors) may soon be allowed to invest through other routes prescribed under FEMA without undergoing additional approvals.
The Sebi chief said that the regulator is also examining whether netting of settlements for trades executed on the same day can be permitted for FPIs, an operational change that could reduce costs, as FPIs currently need to give and take delivery for every trade.
He added that Sebi is working closely with the RBI and the Ministry of Finance to advance these reforms. According to him, Sebi's next phase of reforms is designed to create a best-in-class experience for global investors. Over recent months, the regulator has acted on continuous FPI feedback.
