The Securities and Exchange Board of India (SEBI) has put forward a proposal to launch SWAGAT-FI—a single-window gateway designed to make India’s capital markets more accessible for a select category of verified, low-risk foreign investors.
The initiative is targeted at globally reputed entities such as government-owned funds, central banks, sovereign wealth funds, multilateral institutions, and highly regulated public retail funds. These investor classes, known for their transparency, diversified ownership, and long-term investment approach, already account for more than 70% of foreign portfolio investors’ (FPI) assets under custody in India.
Simplified Onboarding and Compliance
Under the proposed framework, SWAGAT-FI will allow eligible investors to complete both Foreign Portfolio Investor (FPI) and Foreign Venture Capital Investor (FVCI) registrations through a unified, streamlined process—cutting down on paperwork, costs, and regulatory hurdles. Existing FPIs that meet the criteria will also be allowed to opt into the system for easier compliance.
Key features include:
- Extended registration validity: The review and fee-payment cycle for registration and KYC updates would increase from the current 3–5 years to 10 years.
- Consolidated investment accounts: Investors will be able to hold all investments—whether through FPI, FVCI, or alternative investment vehicles—within a single demat account, eliminating duplication and enhancing efficiency.
- Improved regulatory tracking: Depositories will tag investments to ensure transparent oversight.
- Relaxed contribution norms: Restrictions on aggregate contributions from NRIs, OCIs, and resident Indians will be removed for eligible SWAGAT-FI funds, particularly benefiting mutual funds with broad-based retail participation.
Boost to India’s Investment Attractiveness
SEBI believes the “lighter regulatory touch” for low-risk entities will bring Indian norms in line with global best practices, further strengthening the country’s image as a premier investment destination.
The move comes as India sees a sharp rise in foreign holdings. As of June 30, 2025, there were 11,913 registered FPIs, managing assets worth ₹81 trillion, up significantly from ₹51 trillion in March 2022.
If approved, SWAGAT-FI could mark a major leap in foreign investor onboarding, potentially drawing more long-term institutional capital into Indian markets.
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Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
