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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