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SEBI eases compliance for foreign investors in India government bonds
The relief follows an RBI change that removed concentration limits for FPIs investing in G-Secs via the General Route.
The Securities and Exchange Board of India (SEBI) has eased compliance requirements for foreign portfolio investors (FPIs) that invest exclusively in Indian government securities, according to a SEBI circular issued on Monday and covered by LiveMint Markets.
The update broadens a prior exemption in SEBI’s master circular, which had covered only FPIs investing exclusively in G-Secs through the Fully Accessible Route. Under the new terms, FPIs investing only in government securities no longer need to furnish investor group details.
SEBI said the change is aimed at simplifying the regulatory process for overseas investors entering India’s debt market. The regulator pointed to a Reserve Bank of India circular dated 5 June 2026 that withdrew the prescribed concentration limit for FPIs investing in G-Secs via the General Route.
Investor group details are information used by regulators to identify entities within the same investor group or connected investment structure, helping monitor concentration and limit breaches. SEBI said the need to identify an investor group was no longer relevant after the RBI removed the concentration limit.