SEBI has eased FPI KYC requirements, extending the review cycle to eight years for eligible foreign portfolio investors (FPIs). The circular was issued on October 30, 2026 and takes effect on December 1, 2026. Reviews were earlier required every one or three years, depending on jurisdiction, category and regulatory status.
SEBI said the changes are aimed at “reducing repetitive compliance requirements and making it easier for foreign investors to do business in India.” They modify the Master Circular for FPIs, Designated Depository Participants (DDPs) and Eligible Foreign Investors dated May 30, 2024.
Which FPIs get the eight-year KYC review?
Category I FPIs from non-high-risk jurisdictions, and regulated Category II FPIs from non-high-risk jurisdictions, move to the eight-year cycle. Category I FPIs from high-risk jurisdictions registered under Regulation 5(a)(i) also get eight years. Other Category I FPIs in high-risk jurisdictions, other Category II FPIs, and Category II FPIs from high-risk jurisdictions are reviewed every two years.
What else changes for FPI registration continuation?
FPIs no longer need to report changes to previously submitted information or file a no-change declaration when continuing registration. They only pay the applicable fees to their DDPs for the next three-year block, at least 15 days before the existing registration expires.
Which categories are unchanged?
Government securities-only FPIs (GS-FPIs) keep a review schedule tied to their bank accounts, as set by the RBI. SWAGAT-FI FPIs keep a 10-year review and continuation period.
Market and Trade Reaction
No market or investor-body reaction was found in the sources reviewed at the time of writing.
What Happens Next?
Depositories, custodians and DDPs must update their systems and inform affected FPIs before the December 1, 2026 effective date.
Frequently Asked Questions
When do the new FPI KYC norms start?
They take effect on December 1, 2026.
How long is the new KYC review period for FPIs?
Eight years for eligible investors; two years for others in the specified categories.
Do FPIs still have to file a no-change declaration?
No. The requirement is removed; FPIs pay the continuation fees to their DDPs.
Source: Devdiscourse (ANI), October 30, 2026; Outlook Money, October 31, 2026.
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