SEBI Eases Regulations for Investors in Government Securities

SEBI has announced that foreign portfolio investors who invest only in government securities under the fully accessible route will not be required to provide investor group details. Exemptions have been made to attract long-term overseas investments by simplifying compliance and streamlining procedures in India's sovereign debt market.

The Securities and Exchange Board of India (SEBI) made a significant announcement on Wednesday regarding foreign portfolio investors (FPIs) who exclusively invest in government securities. These investors, under the fully accessible route, will not need to provide investor group details.

By exempting them from certain disclosure and reporting requirements, SEBI aims to simplify compliance and attract more long-term overseas investments in the sovereign debt market. The amendments to the FPI framework, introduced in August, reflect this shift and update the master circular accordingly.

Additionally, SEBI has set out that investments by resident Indian individuals must follow the Liberalised Remittance Scheme of the RBI, with specific conditions for global funds. The new provisions will be effective from February 8, 2026, requiring system changes facilitated by custodians and designated depository participants in coordination with SEBI.

(With inputs from agencies.)