Sebi eases compliance norms for FPIs investing only in government securities

The Securities and Exchange Board of India (Sebi) has eased regulatory compliance requirements for foreign portfolio investors (FPIs) that invest exclusively in government securities, removing the need for them to furnish investor group details.

The move follows the Reserve Bank of India’s decision in June to withdraw concentration limits for FPIs investing in government securities through the General Route.

Sebi, in a circular issued on Monday, said the requirement to identify the investor group of an FPI investing only in government securities was no longer relevant following the RBI’s decision.


“FPIs investing only in Government Securities shall not be required to furnish investor group details,” SEBI said, modifying the relevant provision of its master circular governing FPIs, designated depository participants and eligible foreign investors.

Sebi had earlier, through a September 10, 2025 circular, provided a similar exemption to FPIs investing exclusively in government securities under the Fully Accessible Route. The latest amendment extends the relief to FPIs investing only in government securities more broadly.

The regulator said the move was aimed at providing greater ease of investment to FPIs.

Depositories, custodians and designated depository participants have been advised to make the necessary changes to their systems to implement the revised requirement.

The changes will take effect immediately, Sebi said.

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