SEBI Circular – Ease of regulatory compliances for FPIs investing only in Government Securities

SEBI, vide Circular dated September 10, 2025, has eased compliance requirements for Foreign Portfolio Investors (FPIs) investing only in Government Securities (“GS-FPIs”) following amendments to the SEBI (FPI) Regulations, 2019. Key relaxations include exemption from furnishing investor group details, certain disclosure and declaration requirements, and alignment of KYC review periodicity with that of their bank accounts. GS-FPIs must still report all material changes within 30 days. The framework also provides a mechanism for smooth transition between regular FPIs and GS-FPIs, with safeguards to ensure holdings remain limited to Government Securities. The circular takes effect from February 8, 2026.

Link: https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/sep-2025/1757511993247.pdf#page=1&zoom=page-width,-15,842