SEBI to Review Compliance Rules for Foreign Portfolio Investors: SEBI Chairman Tuhin Kanta Pandey

The Securities and Exchange Board of India (SEBI) will issue a paper on compliance requirements for foreign portfolio investor (FPI) onboarding, Chairman Tuhin Kanta Pandey said on Wednesday, October 28, 2026, as per a CNBC TV18 news report. 

Pandey said the regulator had made progress in reducing onboarding timelines. He added that compliance requirements in India remained more demanding than those in other regions. 

Regulator Discusses Issues with FPIs 

SEBI is in contact with foreign portfolio investors to understand the difficulties they face during onboarding. The discussions are intended to gather feedback and identify requirements that could be reviewed. 

The regulator has not provided a date for the paper's release or details of the changes that may be considered. 

Pandey also said SEBI was not actively considering a review of the rules governing self-listing by stock exchanges. 

Changes to Government Securities Rules 

In September 2026, SEBI extended an exemption from submitting investor-group details to FPIs investing exclusively in government securities. The exemption applies regardless of the investment route used. 

The decision followed the Reserve Bank of India's withdrawal of concentration limits for FPIs investing in government securities through the General Route. 

SEBI's board has also approved wider access for FPIs to exchange-traded commodity derivatives. The categories include non-agricultural index derivatives and non-cash-settled non-agricultural commodity derivatives, subject to specified conditions. 

These changes form part of the recent adjustments to rules governing foreign investors. 

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Conclusion 

SEBI's proposed paper will examine compliance requirements for FPI onboarding as the regulator continues to receive feedback from foreign investors. The review follows recent changes to rules covering government securities and commodity derivatives. 

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