We wish to update you on a recent SEBI circular relaxing compliance requirement for Foreign Portfolio Investors (FPIs).
Background: Earlier, only FPIs investing in Government Securities through the "Fully Accessible Route" were exempted from furnishing investor group details. FPIs using the "General Route" still had to comply with concentration limits and identify their investor group.
What has changed: RBI, vide its circular dated June 5, 2026, withdrew the concentration limit requirement for FPIs investing in Government Securities through the General Route as well. As a natural consequence, SEBI has now extended the investor group exemption to all FPIs investing exclusively in Government Securities, irrespective of the route used.
Practical impact:
FPIs investing only in G-Secs (via any route) are no longer required to furnish investor group details.
Depositories, Custodians, and Designated Depository Participants (DDPs) must update their internal systems to reflect this change.
The change is effective immediately.
