Summary: SEBI’s Circular No. HO/19/34/14(10)2026-AFD-POD3/I/24814/2026 dated October 30, 2026 rationalises periodic KYC reviews for Foreign Portfolio Investors (FPIs) and simplifies requirements at the time of continuance of registration. It amends the Master Circular for FPIs, DDPs and Eligible Foreign Investors dated May 30, 2024, with effect from December 1, 2026. For high-risk jurisdictions, Category I FPIs registered under Regulation 5(a)(i) will undergo KYC review every eight years, while other Category I FPIs and all Category II FPIs will be reviewed every two years. For non-high-risk jurisdictions, Category I FPIs and regulated Category II entities will be reviewed every eight years; other Category II FPIs will be reviewed every two years. The existing review periodicity remains unchanged for FPIs investing only in Government Securities (GS-FPIs), whose reviews follow RBI-prescribed periodicity applicable to their respective bank accounts, and SWAGAT-FI FPIs, whose cycle remains ten years. SEBI also dispenses with the requirement to intimate changes in previously furnished information or submit a no-change declaration at registration continuance. FPIs wishing to continue registration must pay fees to their DDP for the subsequent three-year block, or ten years for SWAGAT-FI, at least 15 days before current registration validity expires. Corresponding KYC timelines in the DDP Investor Charter are replaced. Depositories, custodians and DDPs must update their systems and processes and inform the FPIs concerned.
Securities and Exchange Board of India
PR No.67/2026
Ease of Compliance for FPIs – Rationalisation of KYC Review Periodicity
Towards SEBI’s continued efforts to simplify compliance for Foreign Portfolio Investors (FPIs), the periodicity of KYC review under SEBI’s existing framework is being rationalised. Currently, FPIs are subject to periodic KYC review annually or once every three years, depending on the applicable category and other criteria. The revised framework increases the periodicity from one year to two years and from three years to eight years. In case of SWAGAT-FI FPIs, the periodicity of KYC review will remain unchanged at 10 years. Also, the existing relaxations for GS-FPIs will remain unchanged.
Further, the separate confirmation regarding change in previously submitted information at the time of continuance of registration will be discontinued.
The measure seeks to rationalise multiple requirements of similar nature, reduce repetitive compliance and ease the compliance burden on FPIs, thereby promoting ease of doing business.
The above measure forms part of SEBI’s broader endeavour to reduce procedural and repetitive requirements and to provide a seamless, transparent and investor-friendly regulatory environment for FPIs.
The provisions of the circular shall come into effect from December 01, 2026.
The circular issued today can be accessed on the SEBI website, www.sebi.gov.in , under the link “Legal → Circulars”.
Mumbai
October 30, 2026
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Securities and Exchange Board of India
Circular No. HO/19/34/14(10)2026-AFD-POD3/I/24814/2026 | Dated: October 30, 2026
To,
1. Foreign Portfolio Investors (FPIs)
2. Designated Depository Participants (DDPs) and Custodians
3. The Depositories
4. The Stock Exchanges and Clearing Corporations
Dear Sir / Madam,
Subject: Rationalisation of periodicity of KYC review for FPIs
1. 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.
2. With a view to rationalise these requirements, reduce compliance burden and promote Ease of Doing Business, it has been decided:
2.1. To increase the periodicity of KYC review of FPIs. The provisions related to periodicity of KYC review applicable to GS-FPIs and SWAGAT-FI FPIs to remain unchanged.
2.2. To dispense with the requirements relating to intimation of change in information at the time of continuance of registration.
3. Accordingly, the Master Circular shall stand modified as under:
3.1. Para 4 of Part A shall be modified as follows:
(a) Sub-paragraph (i) shall be substituted as under:
“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.”
(b) Sub-paragraph (ii) shall be omitted.
(c) Sub-paragraph (iii) shall be renumbered as (ii) and substituted as under:
“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.”
(d) Existing sub-paragraphs (iv) to (ix) shall be renumbered as sub-paragraphs (iii) to (viii), respectively.”
3.2. Para 5 of Part B shall be modified as follows:
(a) Table 6 under sub-para (i) shall be substituted as under:
|
Table 6 |
||
| Jurisdiction | FPI Category – I | FPI Category – II |
| High Risk | Registered under Regulation 5(a)(i) – every 8 years
Others – every 2 years |
Every 2 years |
| Non-High Risk | Every 8 years | Regulated entities – every 8 years
Others – every 2 years |
3. In the Investor Charter for Designated Depository Participants at Annexure-H, under the heading “TIMELINES PERTAINING TO VARIOUS SERVICES PROVIDED BY DDP”, the entry in the column “Expected Timelines” against serial number 4 (“KYC Review / Update”) shall be substituted as under:
| Jurisdiction | FPI Category – I | FPI Category – II |
|---|---|---|
| High Risk | Registered under Regulation 5(a)(i) – every 8 years
Others – every 2 years |
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.
4. 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.
5. The provisions of this circular shall come into force with effect from December 01, 2026.
6. 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.
7. 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: [email protected]
