Sebi eases FPI compliance rules for G-Sec bets

By ET BureauLast Updated: Sep 08, 2026, 06:36:00 AM IST

Synopsis

The Securities and Exchange Board of India has taken a significant step by relaxing compliance regulations for foreign investors. Foreign Portfolio Investors (FPIs) who are exclusively investing in government securities will no longer be required to disclose their investor group details. This amendment follows a recent circular from the Reserve Bank of India, which abolished concentration limit requirements. The updated rules are in effect immediately, streamlining investment processes.

Mumbai: The Securities and Exchange Board of India (Sebi) on Monday eased regulatory compliance requirements for foreign portfolio investors (FPIs) investing exclusively in government securities, removing the requirement for them to furnish investor group details.

The change follows a June 5, 2026 circular by the RBI, which withdrew the requirement for FPIs investing in government securities through the general route to comply with the prescribed concentration limit.

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"The requirement for identification of investor group by an FPI investing only in government securities is no longer relevant and is therefore being removed," Sebi said in a circular. The rules comes into force with immediate effect. Sebi has directed depositories, custodians and designated depository participants to make changes to their systems to implement the revised requirement.

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