Sebi, RBI join hands to make onboarding easier for FPIs
In a concerted effort to simplify market entry for foreign portfolio investors (FPIs), the Securities and Exchange Board of India (SEBI) has partnered with the Reserve Bank of India (RBI). This collaboration focuses on streamlining various regulatory procedures that FPIs currently face when investing in India. The joint initiative builds upon previous efforts, notably the launch of the India Market Access portal in September 2025, which was designed to facilitate easier engagement for international investors. The goal is to enhance the attractiveness of Indian markets to global capital.
What this means
This joint regulatory action aims to reduce friction for FPIs, potentially leading to increased foreign capital inflows into Indian equities and debt markets. For banks, particularly those with custodial and FPI services divisions, it means a potentially larger client base and simplified operational processes for FPI onboarding and compliance. Improved ease of doing business could also boost India's global financial market standing.
Most affected: Custodial banks, Capital market divisions
Key takeaway: Monitor the specific procedural changes emerging from the SEBI-RBI collaboration to ensure FPI client onboarding processes are updated efficiently.
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