SEBI removes investor-group disclosure requirement for G-sec-only FPIs

New Delhi: The Securities and Exchange Board of India (Sebi) has exempted foreign portfolio investors investing exclusively in Indian government securities from furnishing details of their investor groups, further easing compliance requirements for overseas investors in the country’s sovereign debt market.

The relaxation, announced through a circular on Monday, has come into force with immediate effect.

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“FPIs investing only in government securities shall not be required to furnish investor group details,” SEBI said.

The disclosure requirement was linked to the regulatory framework for monitoring concentration limits by clubbing investments made by related FPIs. Such information helped determine whether connected foreign investors had collectively breached the prescribed investment ceiling.

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The Reserve Bank of India (RBI), however, removed the concentration limit applicable to FPI investments in government securities under the general route with effect from June 5, 2026. Following the change, Sebi concluded that identifying investor groups was no longer relevant for FPIs whose investments were confined to government securities.

The exemption is narrowly applicable to G-sec-only FPIs and does not amount to a general waiver of investor-group disclosures for foreign funds investing in other Indian securities.

The latest measure is part of regulatory efforts to simplify access to India’s government bond market and reduce compliance requirements that no longer serve their original purpose.

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