The Securities and Exchange Board of India (SEBI), through Circular No. HO/(485)2026-AFD-POD2/I/20296/2026 dated September 07, 2026, has further eased regulatory compliances for Foreign Portfolio Investors (FPIs) investing only in Government Securities. The circular modifies the “Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors” dated May 30, 2024.
SEBI had earlier, through its September 10, 2025 circular, provided that FPIs investing exclusively in Government Securities under the Fully Accessible Route would not be required to furnish investor group details. SEBI now states that the Reserve Bank of India, through its circular dated June 05, 2026, has withdrawn the requirement for FPIs investing in Government Securities through the General Route to comply with the prescribed concentration limit. Consequently, SEBI considers identification of the investor group by an FPI investing only in Government Securities to be no longer relevant.
Accordingly, the relevant sub-paragraph under Para 1 of Part A of the Master Circular is modified to provide that FPIs investing only in Government Securities shall not be required to furnish investor group details. Depositories, Custodians and Designated Depository Participants are directed to make the necessary system changes.
The circular takes effect immediately. SEBI states that it has been issued 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 the SEBI (Foreign Portfolio Investors) Regulations, 2019.
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Securities and Exchange Board of India
Circular No. HO/(485)2026-AFD-POD2/I/20296/2026 | Dated: September 07, 2026
To,
1. Foreign Portfolio Investors (FPIs)
2. Designated Depository Participants (DDPs) and Custodians
3. The Depositories
Dear Sir / Madam,
Subject: Ease of regulatory compliances for FPIs investing only in Government Securities
1. 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’.
2. 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.”
3. 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.
4. 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.”
5. Depositories, Custodians and Designated Depository Participants are advised to make necessary changes in their systems to effect the changes proposed above.
6. The provisions of this circular shall come into force with immediate effect.
7. 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.
8. This Circular is available at sebi.gov.in under the link “Legal — Circulars”.
Yours faithfully,
Manish Kumar Jha
Deputy General Manager
Tel No.: 022-26449219
E-mail: [email protected]
