In a significant move aimed at boosting India’s appeal to global investors, the Securities and Exchange Board of India (SEBI) has launched SWAGAT-FI — a Single Window Automatic & Generalised Access for Trusted Foreign Investors. Announced on December 1, 2025, this framework will simplify market entry and compliance for low-risk foreign investors, helping streamline India’s foreign investment landscape ahead of its enforcement from June 1, 2026.
The primary objective of the SWAGAT-FI framework is to create a simplified, unified, and long-term access point for trusted foreign investors who pose low regulatory risks. By merging the registration processes of Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs), SEBI is removing entry barriers and repetitive compliance hurdles for such institutions.
This is expected to significantly reduce turnaround times and costs for foreign institutions investing in India, thereby boosting investor confidence and long-term capital inflows.
SEBI has defined low-risk foreign investors eligible under the SWAGAT-FI window to include:
These investors are already under strict regulatory frameworks in their home jurisdictions and are generally seen as stable and long-term participants in financial markets.
To prevent regulatory inconsistencies, SEBI capped resident sponsor contributions to a maximum of 10% of the fund’s corpus, harmonising norms with the International Financial Services Centres Authority (IFSCA).
As of June 30, 2025, India had 11,913 registered FPIs holding assets worth ₹80.83 lakh crore. SWAGAT-FIs contribute over 70% of total FPI assets under custody, showcasing their critical role in Indian markets. The framework aligns with broader policy goals of capital market deepening, startup funding, and global financial integration.
Q1. What is SWAGAT-FI and its purpose?
Answer: SWAGAT-FI is a framework launched by SEBI to simplify market entry for low-risk foreign investors in India, enhancing accessibility and compliance.
Q2. Who qualifies as a SWAGAT-FI investor?
Answer: Eligible investors include sovereign wealth funds, central banks, government-owned entities, and regulated public funds, ensuring they are stable long-term market participants.
Q3. How does SWAGAT-FI enhance registration processes?
Answer: It allows simultaneous registration under both FPI and FVCI regulations, reducing documentation requirements and compliance burdens for foreign investors.
Q4. What is the registration validity for SWAGAT-FI investors?
Answer: The registration validity has been extended to 10 years, compared to the previous three to five years, providing long-term regulatory predictability.
Q5. What impact does SWAGAT-FI have on foreign investment in India?
Answer: It boosts investor confidence, reduces costs, and aims to increase long-term capital inflows into the Indian market.
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