Market regulator Securities and Exchange Board of India (SEBI) has further eased regulatory compliance for foreign portfolio investors (FPIs) that invest exclusively in government securities, removing the requirement to furnish investor group details.
In a circular issued on 7 September 2026, SEBI said the change follows the Reserve Bank of India’s (RBI’s) decision to withdraw the concentration limit applicable to FPIs investing in government securities through the general route.
SEBI had earlier,
through its circular dated 10 September 2025, amended the master circular for foreign portfolio investors, designated depository participants (DDPs) and eligible foreign investors, dated 30 May 2024, to facilitate ease of regulatory compliance for FPIs investing exclusively in government securities.
As part of those changes, FPIs investing exclusively in government securities under the fully accessible route were exempted from furnishing investor group details.
The regulator has now expanded this exemption to all FPIs investing only in government securities. SEBI said the identification of an investor group is no longer relevant following the RBI’s withdrawal of the prescribed concentration limit for FPIs investing in government securities through the general route.
“FPIs investing only in government securities shall not be required to furnish investor group details,” SEBI said.
The change modifies the relevant provision under Para 1 of Part A of the master circular for FPIs, DDPs and eligible foreign investors.
The move follows an RBI circular dated 5 June 2026, under which the requirement for FPIs investing in government securities through the general route to comply with the prescribed concentration limit was withdrawn. With the concentration limit no longer applicable, SEBI said the associated requirement to identify the investor group also becomes unnecessary.
The latest relaxation is aimed at providing greater ease of investment to FPIs and reducing regulatory compliance for investors whose investments are restricted to government securities.
SEBI has directed depositories, custodians and DDPs to make the necessary changes in their systems to implement the revised requirement. The provisions of the circular have come into force with immediate effect.
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