SEBI Eases FPI KYC Rules; Eligible Foreign Investors To Get Up To 8-Year Review Cycle

The Securities and Exchange Board of India (SEBI) has eased Know Your Customer (KYC) review requirements for foreign portfolio investors (FPIs), extending the review period to as long as eight years for eligible investors. Under the revised framework announced on October 30, 2026, the review intervals will increase from the existing one-year or three-year cycles to two years or eight years, depending on the investor's category, jurisdiction and regulatory status.

The regulator has also removed a separate requirement for FPIs, other than those investing only in government securities, to intimate changes in previously submitted information or provide a no-change declaration at the time of continuation of registration.

The revised provisions will come into force on December 1, 2026. SEBI said the changes are intended to reduce repetitive compliance requirements and ease the operational burden on foreign investors.

SEBI's revised FPI KYC review rules: What changes?

Under the earlier framework, FPIs were generally subject to periodic KYC reviews every year or once every three years, depending on their category, jurisdiction and regulatory status.

The revised framework extends these intervals for eligible investors. The applicable review frequency will continue to depend on the investor's risk classification and regulatory status.

The revised review schedule is as follows:

The eight-year cycle therefore does not apply to every foreign portfolio investor. The review frequency depends on the investor's classification and the jurisdiction from which it operates.

SEBI removes separate information-update requirement

Alongside the longer KYC review intervals, SEBI has removed the separate requirement for most FPIs to intimate changes in previously submitted information or provide a no-change declaration when continuing their registration.

The requirement will no longer apply at the time of registration continuation to FPIs other than those investing only in government securities.

Under the revised framework, FPIs seeking continuation of registration for the next three-year block must pay the applicable fee to their designated depository participant (DDP). The payment must be made at least 15 days before the existing registration validity expires.

For SWAGAT-FI FPIs, the registration block remains 10 years, and the applicable continuation fee must be paid ahead of the next block.

Which foreign investors are excluded from the revised changes?

SEBI has retained the existing KYC review arrangements for two categories.

For FPIs investing only in government securities (GS-FPIs), the review frequency will continue to follow the periodicity applicable to their respective bank accounts, as prescribed by the Reserve Bank of India.

For SWAGAT-FI FPIs, the existing 10-year KYC review cycle will remain unchanged.

The revised framework therefore primarily changes the compliance schedule for other eligible foreign portfolio investors.

When will the new SEBI FPI KYC rules take effect?

The revised requirements will become effective from December 1, 2026.

SEBI has directed depositories, custodians and designated depository participants to make the necessary changes to their systems and processes and communicate the revised requirements to the concerned FPIs.

The move is part of the regulator's broader effort to rationalise compliance requirements and improve the ease of doing business for foreign investors participating in India's securities market.

By reducing the frequency of periodic KYC reviews for eligible investors and removing a separate information-update requirement, the revised framework is expected to reduce repetitive administrative work for foreign portfolio investors and their intermediaries.

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