Ease of regulatory compliances for FPIs investing only in Government Securities · HO/(485)2026-AFD-POD2/I/20296/2026
SEBI circular HO/(485)2026-AFD-POD2/I/20296/2026 · 07 Sept 2026
SEBI circular HO/(485)2026-AFD-POD2/I/20296/2026 · 07 Sept 2026
Summary
Check the official recordThe Securities and Exchange Board of India removes the requirement for Foreign Portfolio Investors (FPIs) that invest only in Government Securities to provide investor group details. This change follows the withdrawal of concentration limit requirements for FPIs investing in Government Securities through the General Route by the Reserve Bank of India. Depositories, Custodians, and Designated Depository Participants must update their systems to reflect this change. The new rule applies with immediate effect.
What you must do
Key dates
Who is affected
[Image omitted. See the official document.]
CIRCULAR
HO/(485)2026-AFD-POD2/I/20296/2026
September 07, 2026
To,
Dear Sir / Madam,
Subject: Ease of regulatory compliances for FPIs investing only in Government Securities
SEBI vide circular dated September 10, 2025 amended the “Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors” No. SEBI/HO/AFD/AFD-PoD-2/P/CIR/P/2024/70 dated May 30, 2024 (hereinafter referred to as “Master Circular”) to facilitate ease of regulatory compliances for ‘FPIs investing only in Government Securities’.
Accordingly, the following sub para was inter alia inserted under Para 1 of Part A of the Master Circular:
“FPIs that invest exclusively in Government Securities under Fully Accessible Route shall not be required to furnish investor group details.”
With a view to provide greater ease of investment to FPIs, Reserve Bank of India vide circular dated June 05, 2026, has inter alia withdrawn the requirement for FPIs investing in Government Securities through the General Route to comply with the prescribed concentration limit. Consequently, the requirement for identification of investor group by an FPI investing only in Government Securities is no longer relevant and is therefore being removed.
[Image omitted. See the official document.]
Accordingly, the aforementioned sub-para under Para 1 of Part A of the Master Circular stands modified as follows:
“FPIs investing only in Government Securities shall not be required to furnish investor group details.”
Depositories, Custodians and Designated Depository Participants are advised to make necessary changes in their systems to effect the changes proposed above.
The provisions of this circular shall come into force with immediate effect.
This Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulations 22(1), 22(3), 22(5) and 44 of SEBI (Foreign Portfolio Investors) Regulations, 2019 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
This Circular is available at www.sebi.gov.in under the link “Legal ---Circulars”.
Yours faithfully,
Manish Kumar Jha
Deputy General Manager
Tel No.: 022-26449219
E-mail: manishkj@sebi.gov.in