FPI Onboarding in India: SEBI-RBI Compliance Updates

Overview: Security Exchange Board of India and the Reserve Bank of India (RBI) are working to make Foreign Portfolio Investor (FPI) onboarding faster and more digital. The efforts build on digital signatures, e-Power of Attorney, the India Market Access portal and SWAGAT-FI. SEBI has also eased certain requirements for FPIs investing only in Government Securities.

Foreign Portfolio Investors (FPIs) could see a more streamlined onboarding process as Securities Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) work to reduce procedural hurdles. SEBI Chairman Tuhin Kanta Pandey has said five-working-day FPI onboarding had been successfully tested for certain jurisdictions. The development comes as regulators continue to simplify documentation, KYC and registration processes for foreign investors.

However, the five-working-day timeline is not a general registration guarantee for all FPIs. It has been tested for certain jurisdictions with the involvement of custodians and depositories. Meanwhile, digital documentation, e-Power of Attorney and other recent SEBI measures are gradually reducing the paperwork for FPI onboarding.

SEBI-RBI Push to Simplify FPI Onboarding

Foreign Portfolio Investors (FPIs) may get a faster and more digital onboarding process as SEBI and the RBI work to remove procedural hurdles. 

The SEBI Chairman has confirmed that onboarding within five working days had been successfully tested for certain jurisdictions. This is not a general five-day registration guarantee for all FPIs, states a Business Standard report. The move builds on earlier steps to simplify FPI registration, KYC and documentation.

Latest FPI Compliance Measures

SEBI has introduced several measures to reduce procedural work:

• Digital Signature Certificate: A DSC facility was added to the Common Application Form (CAF) portal in January 2026, allowing applications for the certificate during FPI registration.
• SWAGAT-FI: Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) provides eligible FPIs and FVCIs with a unified registration framework. It took effect on 1st June, 2026, and provides a longer 10-year registration and KYC cycle for eligible SWAGAT-FI FPIs, subject to applicable conditions.
• Digital Power of Attorney: From the 20th August, 2026, SEBI has permitted digitally signed Powers of Attorney from FPIs. 
• Government Securities: On 7th September, 2026, SEBI eased certain requirements for FPIs investing only in Government Securities.

These measures simplify processes but do not remove core KYC, beneficial ownership, reporting or other regulatory obligations.

Bond Indices Also on the Agenda

SEBI and RBI are also working on draft guidelines for bond indices and related derivatives that could trade on exchanges. The framework was still under development as of 30th September 2026. It should therefore be treated as a regulatory proposal, not an operational investment framework.

What Businesses Should Watch

Businesses dealing with foreign institutional investors should:

• Keep KYC, ownership and corporate records updated.
• Distinguish FPI from FDI before structuring foreign capital.
• Review applicable SEBI, FEMA, tax and disclosure requirements.
• Keep investor and transaction documents ready for regulatory review.

For private startups, foreign equity investment generally falls under the FDI framework, rather than FPI rules. The FPI changes become more relevant when a business is preparing for an IPO, has institutional investors or expects to access listed markets.

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