SEBI Eases FPI KYC Norms: Eligible Foreign Investors To Get 8-Year Review Window From December 1

SEBI Extends FPI KYC Review Cycle

The Securities and Exchange Board of India has revised the Know Your Customer framework for foreign portfolio investors, allowing eligible overseas investors to undergo periodic KYC reviews once every eight years. The change, issued through a regulatory circular, takes effect from December 1, 2026. Previously, review timelines ranged between one and three years, depending on the investor's category, jurisdiction and regulatory status.

Which Investors Benefit

Category I FPIs based in non-high-risk jurisdictions move to the eight-year cycle. The same extended timeline covers Category I investors from high-risk jurisdictions registered under Regulation 5(a)(i). Other Category I FPIs operating from high-risk jurisdictions will continue with reviews every two years. Among Category II investors, regulated FPIs from non-high-risk jurisdictions also qualify for the eight-year window, while the remaining investors in that category, including those in high-risk jurisdictions, stay on the two-year cycle.

Two sets of investors are unaffected. Government securities-only FPIs will follow the review frequency tied to their bank accounts under Reserve Bank of India guidelines. SWAGAT-FI investors retain their existing ten-year review cycle.

Registration Continuation Simplified

SEBI has also eased the process for FPIs seeking to continue registration. Earlier, investors had to report changes in previously submitted information or documents and, where applicable, file a declaration confirming no changes had occurred. Those requirements have been removed, cutting the paperwork involved in maintaining registration.

Investors continuing registration for another three years will now only need to pay the applicable continuation fee to their Designated Depository Participants. SWAGAT-FI investors keep a ten-year continuation period. SEBI has specified that the fee must be paid at least fifteen days before the current registration validity ends, to f…