SEBI To Float Consultation Paper To Align Indian Market With Global Norms, Revamp FPI Framework

The Securities and Exchange Board of India (SEBI) is working closely with the Reserve Bank of India (RBI) to dramatically simplify foreign portfolio investor (FPI) access, aiming to compress onboarding turnaround times from nearly a month to just five days, SEBI Chairman Tuhin Kanta Pandey said at the NDTV Profit Ignite 2026 event on Wednesday.

Addressing market participants, Pandey highlighted that the market regulator is preparing a series of consultation papers designed to align India's regulatory architecture with global standards while dismantling legacy friction points.

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Slashing FPI Onboarding Friction

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A central priority for the capital markets watchdog is easing overseas capital entry into Indian equities and debt. SEBI is preparing a dedicated consultation paper addressing FPI norms, with a strong focus on regulatory streamlining and end-to-end digitisation.

"We are working with the RBI to see how quickly we can onboard foreign investors and are actively working on norms that are becoming a barrier," Pandey said. The primary objective is to transition from manual, friction-heavy compliance to a fully digitised workflow, cutting onboarding timelines from over 30 days down to five business days.

The planned framework intends to eliminate procedural bottlenecks, rationalise documentation, and enhance systemic transparency for global institutional investors looking to participate in India's ongoing economic expansion.

Global Alignment Through Consultation Papers

Pandey noted that Indian capital markets have reached systemic scale, necessitating that regulatory frameworks benchmark against the world's most sophisticated jurisdictions.

SEBI will soon release a series of discussion papers aimed at fine-tuning domestic market regulations to ensure consistency with international best practices. These upcoming papers will solicit industry feedback on enhancing operational ease, liquidity mechanisms, and institutional participation while maintaining regulatory rigour.

Balancing Digital Access With Safeguards

Reflecting on the retail investment landscape, the SEBI chief acknowledged the transformative role played by regulated digital investment platforms in deepening capital market penetration across the country.

While widespread digital access has empowered a new generation of household investors, Pandey emphasised that democratisation cannot occur at the expense of market safety. "Access must go hand-in-hand with protection," he stated, reiterating that investor education, transparency, and risk disclosure remain central mandates for market intermediaries.

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