Sebi to review FPI compliance requirements and issue consultation paper to align disclosure norms with global standards

Key facts

• Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey announced on October 28, 2026 that the regulator will review compliance requirements for foreign portfolio investors (FPIs) and issue a consultation paper to align Indian norms with global standards.
• Pandey acknowledged that some compliance requirements in India remain more onerous than in other major jurisdictions, and said the review will preserve safeguards for investor protection and market integrity.
• Sebi is examining existing norms to facilitate greater foreign investor participation in domestic markets, and has already streamlined market access, eased digital onboarding and harmonised several compliance requirements with major global jurisdictions.
• Sebi is considering relaxing additional disclosure rules that require FPIs above a certain asset size or with concentrated equity exposure in a company or corporate group to share granular details of investors in the funds, so as to enhance transparency without forcing funds to sell shares.
• One suggestion is to fix a low threshold equity holding in a company below which an FPI would not need to disclose investor details even if the fund is focused on one or two firms or a group.
• It has been proposed that FPIs with concentrated investments in professionally-run companies with no identifiable promoters and in public sector undertakings be exempted from the additional disclosure requirements.