SWAGAT-FI: Sebi unveils single-window gateway for low risk foreign investors; framework aims to cut compliance load

Markets regulator Sebi has introduced a single-window access framework for low-risk foreign investors, aiming to simplify regulatory processes and make India a more attractive investment destination, according to PTI. The new system is designed to streamline compliance, ease multiple registrations and reduce repetitive documentation across investment routes.Called the Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI), the framework applies to entities such as sovereign wealth funds, central banks, multilateral bodies, government-owned funds, regulated public retail funds, insurance companies and pension funds. Sebi notified amendments to the FPI and FVCI regulations on December 1, which come into effect on June 1, 2026.Under the new structure, SWAGAT-FIs can register simultaneously as Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs) without additional documentation. This dual route will allow them to invest in listed equities and debt as FPIs, and in unlisted companies, specified sectors and startups as FVCIs.Sebi has also extended the validity period for continuance of registration — including fee payment and KYC review — to 10 years, up from the current three or five years. The regulator said the move is aimed at reducing operational friction and supporting long-term participation.For FPIs operating from International Financial Services Centres (IFSCs), Sebi has allowed retail schemes with a resident Indian sponsor or manager to register as FPIs, bringing them on par with alternative investment funds that already enjoy this facility. The regulator also addressed inconsistencies between Sebi and the International Financial Services Centres Authority (IFSCA) by capping sponsor contributions at 10% of a fund’s corpus or assets under management.As of June 30, 2025, India had 11,913 registered FPIs with assets worth Rs 80.83 lakh crore, Sebi said, adding that SWAGAT-FIs account for over 70% of FPI assets under custody.