SEBI Introduces SWAGAT-FI with Single Licence and Longer Validity for Select FPIs

SEBI Chairman Tuhin Kanta Pandey reportedly said the regulator has introduced the Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework.  

The category is meant for certain Foreign Portfolio Investors (FPIs) seen as relatively low risk. These include sovereign wealth funds, publicly listed funds, and insurance-based investment entities. 

Single-Window Route for Select Investors 

Under the framework, eligible investors will be able to operate with a single licence. They will also receive a longer registration period compared with the existing structure.  

The idea is to cut down on repeated approvals and documentation for institutions that already follow governance and disclosure norms. 

Framework Rolled Out Last Month 

The SWAGAT-FI system was formally rolled out last month. It is intended to simplify registration and compliance for selected foreign investors entering Indian markets. 

Pandey said institutions falling under this category would be able to carry out most activities through one registration instead of managing multiple licences.  

The approach is expected to reduce administrative processes and make entry timelines more predictable for long-term investors. 

Corporate Bond Market Measures 

The SEBI chairman also spoke about steps being taken to develop the corporate bond market. He said several structural measures have been introduced to improve price discovery and participation. 

Participants in the over-the-counter market will have to shift to an electronic bidding platform once transactions cross a specified threshold. SEBI has operationalised an Electronic Bidding Platform for primary issuances. 

A Request for Quote platform has been introduced in the secondary market to support two-way pricing. Online Bond Platform Providers have also been enabled, allowing retail investors to buy corporate bonds through digital platforms. 

Read More: SEBI Eases Capacity Norms for Commodity Derivatives Segment! 

Conclusion 

The new framework and bond-market measures show SEBI’s focus on easing processes for certain foreign investors while building more formal trading systems in the corporate debt market. 

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