The Securities and Exchange Board of India (SEBI) will extend know-your-customer (KYC) review intervals for three groups of foreign portfolio investors, easing recurring compliance under rules taking effect Dec. 1.
An Oct. 30 circular assigns an eight-year review cycle to Category I FPIs from non-high-risk jurisdictions, as well as Category I FPIs from high-risk jurisdictions registered under Regulation 5(a)(i). The cycle also covers regulated Category II FPIs from non-high-risk jurisdictions.
Other specified investors will have reviews every two years: Category I FPIs from high-risk jurisdictions that are not registered under Regulation 5(a)(i), all Category II FPIs from high-risk jurisdictions, and non-regulated Category II FPIs from non-high-risk jurisdictions.
Government-securities-only FPIs will continue to follow review schedules linked to KYC requirements for their bank accounts under Reserve Bank of India (RBI) rules. Investors using the Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) route retain a 10-year cycle.
The circular also removes two steps for FPIs outside the government-securities-only group when they continue registration: reporting changes to information previously submitted and filing a declaration that there have been no changes. They must still pay the applicable continuation fee at least 15 days before registration expires. Government-securities-only FPIs already had those two exemptions under a September 2025 SEBI circular.
KYC reviews are used to keep due-diligence documents and information current. Under the previous framework, review intervals were generally annual or every three years, depending on an investor’s jurisdiction, category and regulatory status. SEBI describes the changes as an easing of compliance.
The regulator directed depositories, custodians and designated depository participants to update their systems and notify affected investors, without setting a deadline for that work. Eligible FPIs gain less frequent reviews; those financial institutions must handle the system updates and notices. SEBI has also outlined a separate target to shorten FPI onboarding. The revised review cycles take effect Dec. 1, 2026.
