- FPIs investing only in Indian government securities need not submit investor group details now
- The SEBI circular issued on September 7 aims to reduce compliance for such foreign investors
- Earlier, exemption was limited to FPIs using the Fully Accessible Route for government securities
Foreign portfolio investors that invest only in Indian government securities will no longer have to submit details of their investor group to regulators, following a SEBI circular issued on Sept. 7.
The change is aimed at reducing compliance requirements for foreign investors that invest exclusively in government securities. Until now, the exemption was available only to FPIs investing through the Fully Accessible Route. Those investing in government securities through other routes were still required to furnish investor-group details.
Investor-group disclosures are used by regulators to identify related investors and monitor whether concentration limits are being breached. However, the relevance of that requirement changed after the Reserve Bank of India eased rules for foreign investors in government securities.
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On June 5, 2026, the RBI withdrew the requirement for FPIs investing in government securities through the General Route to comply with prescribed concentration limits. With those limits no longer applicable, the need to identify investor groups for such investors effectively fell away, the SEBI circular said.
SEBI said that, as a result, the requirement for identification of investor groups by FPIs investing only in government securities is no longer relevant. The regulator has therefore expanded the exemption beyond the Fully Accessible Route and extended it to all FPIs that invest exclusively in government securities.
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