SEBI working on fully digitising on-boarding process for FPIs: Tuhin Kanta Pandey

Tuhin Kanta Pandey, Chairman, SEBI

SEBI is moving to fully digitise the Foreign Portfolio Investor (FPI) registration process, aiming to cut approval timelines from months to a few days, Chairman Tuhin Kanta Pandey said on Wednesday.

The shift to digital signatures and an entirely paperless workflow is intended to simplify access for overseas investors while addressing data-privacy concerns. A second registration platform is also being developed by CDSL to improve service quality and reduce bottlenecks.

Speaking at Goldman Sachs’ 14th India CIO Conference, Pandey said FPIs have been “central” to India’s capital-market growth, with those portfolio flows, since 1992, delivering a 9.3 per cent XIRR. As of September 2025, FPIs manage $876 billion in assets and hold about 17 per cent of listed equity.

SEBI is also exploring operational changes to ease trading. The regulator is examining whether netting of settlements for trades executed on the same day can be permitted for FPIs, who currently give and take delivery for every trade. Discussions with the Reserve Bank of India (RBI) and the Finance Ministry are under way, he said.

Further easing of market access is being considered under the SWAGAT-FI framework, which may eventually allow trusted foreign investors to use other FEMA routes without additional approvals.

FPI feedback

Pandey said recent reforms have been shaped by continuous FPI feedback. The registration module has been overhauled, a lighter regulatory framework has been introduced for FPIs investing solely in government securities, and the anchor investor framework in IPOs has been modified to accommodate large FPIs operating multiple funds.

SEBI remains clear and consistent in its approach, he said, adding, “While we are guardians of trust in our markets, we are also a facilitator of efficient capital formation. We are committed to a risk-based regulatory approach that is consultative, transparent and facilitative.”

According to him, capital markets are now a key pillar of economic growth and not merely an economic barometer.

Amidst global uncertainty, India stands out for its resilience and growth, he said. “Our macroeconomic fundamentals remain strong, with our digital infrastructure setting global benchmarks. The recent S&P upgrade is further external validation of this strength,” Pandey added.

Published on November 19, 2025