The Securities and Exchange Board of India (SEBI) has amended its Foreign Portfolio Investors (FPI) Regulations, 2019, with a new notification dated August 11, 2025. These changes will come into effect 180 days after the notification is published in the Official Gazette. The amendments primarily introduce exemptions for a specific category of FPIs. Under the new rules, FPIs that invest exclusively in Government Securities will be exempt from certain compliance requirements. This exemption applies to specific provisions within Regulation 4 and Regulation 22 of the original regulations. The amendments add provisos stating that these requirements will not be applicable to FPIs that only invest in government securities, subject to conditions that may be specified by SEBI. This regulatory change aims to simplify the compliance framework for a targeted group of foreign investors, potentially encouraging more foreign capital flow into India’s government debt market.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 11th August, 2025
SECURITIES AND EXCHANGE BOARD OF INDIA (FOREIGN PORTFOLIO INVESTORS)
(AMENDMENT) REGULATIONS, 2025
F.No. SEBI/LAD-NRO/GN/2025/254.—In exercise of the powers conferred by sub-section (1) of Section 30 read with sub-section (1) of Section 11, clause (ba) of sub-section (2) of section 11 and sub-sections (1) and (1A) of Section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), and under Section 25 of the Depositories Act, 1996 (22 of 1996), the Board hereby makes the following regulations, to further amend the Securities and Exchange Board of India (Foreign Portfolio Investors ) Regulations, 2019, namely, –
1. These regulations may be called the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2025.
2. They shall come into force on the one hundred eightieth day from the date of publication of these regulations in the Official Gazette.
3. In the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019, –
I. In regulation 4, in clause (c), after sub-clause (v),
i. the following first proviso shall be inserted, namely, –
“Provided that the provisions of sub-clauses (i), (ii) and (iv) of clause (c) shall not be applicable to foreign portfolio investor who invests only in Government Securities, in accordance with the conditions as may be specified by the Board from time to time.”;
ii. in the second proviso, after the word “Provided” and before the word “that”, the word “further” shall be inserted.
II. In regulation 22,
i. in sub-regulation (1), after clause (l), the following proviso shall be inserted, namely, –
“Provided that the provisions of this clause shall not be applicable to foreign portfolio investor who invests only in Government Securities, in accordance with the conditions as may be specified by the Board from time to time.”
ii. in sub-regulation (3), after the words “registered as foreign portfolio investors” and before the words and symbol “and directly or indirectly,”, the words and symbol “other than foreign portfolio investor who invests only in Government Securities, in accordance with the conditions as may be specified by the Board from time to time,” shall be inserted.
iii. in sub-regulation (5), the following proviso shall be inserted, namely, –
“Provided that the provisions of this sub-regulation shall not be applicable to foreign portfolio investor who invests only in Government Securities, in accordance with the conditions as may be specified by the Board from time to time.”
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./294/2025-26]
Footnote:
1. The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019, the Principal Regulations were published in the Gazette of India on September 23, 2019 vide No. SEBI/LAD-NRO/GN/2019/36).
2. The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 were subsequently amended on –
(1) 19th December, 2019 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/2019/44.
(2) 7th April, 2020 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2020 vide No SEBI/LAD-NRO/GN/2020/09.
(3) 17th April, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10.
(4) 3rd August, 2021, by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2021, vide No. SEBI/LAD-NRO/GN/2021/30.
(5) 3rd August, 2021 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/32.
(6) 26th October, 2021 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/54
(7) 14th January, 2022 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/64
(8) 9th November, 2022 by the Securities and Exchange Board of India (Payment of Fees (Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/99
(9) 14th March, 2023, by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/128.
(10) 3rd July, 2023, by the Securities and Exchange Board of India (Alternative Dispute Resolution Mechanism) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/137.
(11) 10th August, 2023 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/143
(12) 3rd June, 2024 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2024 vide No. SEBI/LAD-NRO/GN/2024/183.
(13) 26th June, 2024 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2024 vide No. SEBI/LAD-NRO/GN/2024/185.
(14) 10th February, 2025, by the Securities and Exchange Board of India (Investor Charter) (Amendment) Regulations, 2025 vide No. SEBI/LAD-NRO/GN/2025/228.
