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SEBI modifies the KYC review periodicity for Foreign Portfolio Investors (FPIs) to reduce compliance burdens. The circular increases the review intervals for specific FPI categories based on jurisdiction and registration status. It also removes the requirement for FPIs to submit a no-change declaration or intimate information changes during registration continuance. FPIs must now only pay the registration fees to their Designated Depository Participants (DDPs) at least 15 days before the current registration expires. Depositories, Custodians, and DDPs must update their systems to reflect these changes. These provisions apply to all FPIs, excluding GS-FPIs and SWAGAT-FI FPIs, whose existing review requirements remain unchanged. The new rules take effect on December 01, 2026.
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[Image omitted. See the official document.]
CIRCULAR
HO/19/34/14(10)2026-AFD-POD3/I/24814/2026 October 30, 2026
To,
Dear Sir / Madam,
Subject: Rationalisation of periodicity of KYC review for FPIs
Para 5 of Part B of the Master Circular for FPIs, DDPs and Eligible Foreign Investors dated May 30, 2024, as amended from time to time (“Master Circular”), provides for KYC review of FPIs annually or every three years, depending upon the jurisdiction, category and regulated status of the FPI. Separately, Para 4 of Part A of the Master Circular requires an FPI (other than FPIs investing only in Government Securities, hereinafter referred as ‘GS-FPIs’) to intimate changes in previously furnished information or submit a no-change declaration at the time of continuance of registration.
With a view to rationalise these requirements, reduce compliance burden and promote Ease of Doing Business, it has been decided:
3.1. Para 4 of Part A shall be modified as follows:
“i. FPI who wish to continue with their registration for the subsequent block of three years (10 years in case of SWAGAT-FI) shall pay the fees to their DDP.”
“ii. FPI shall pay the fees for continuance of its registration at least 15 days prior to current validity of its registration in order to facilitate a smooth continuance process.”
3.2. Para 5 of Part B shall be modified as follows:
Table 6
| Jurisdiction | FPI Category – I | FPI Category – II |
|---|---|---|
| High Risk | Registered under Regulation 5(a)(i) – every 8 years | Every 2 years |
| Others – every 2 years | ||
| Non-High Risk | Every 8 years | Regulated entities – every 8 years |
| Others – every 2 years |
| Jurisdiction | FPI Category – I | FPI Category – II |
|---|---|---|
| High Risk | Registered under Regulation 5(a)(i) – every 8 years | Every 2 years |
| Others – every 2 years | ||
| Non-High Risk | Every 8 years | Regulated entities – every 8 years |
| Others – every 2 years |
In case of GS- FPI: as per periodicity of KYC review applicable to their respective bank accounts, as prescribed by RBI.
In case of SWAGAT-FI FPI: 10 years.
Depositories, Custodians and DDPs shall make necessary changes in their systems and processes to give effect to the provisions of this circular, and shall bring the same to the notice of FPIs concerned.
The provisions of this circular shall come into force with effect from December 01, 2026.
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 Regulation 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
