Sebi Charts Course to Simplify Foreign Investor Access to Indian Markets

The Securities and Exchange Board of India (Sebi) is prioritizing measures to lower barriers for foreign investors seeking exposure to Indian financial markets, with a focus on digitizing account opening processes and broadening investment options.

The regulator's roadmap includes simplifying the onboarding journey through enhanced digital platforms, a move aimed at reducing administrative friction and time-to-market for foreign portfolio investors (FPIs). This initiative aligns with the broader push to make India's capital markets more globally competitive and accessible.

Sebi is also working to expand FPI participation in commodity derivatives, an asset class that has historically seen limited foreign participation. The regulator is examining mechanisms to allow foreign investors greater access to these markets, which could attract significant capital flows into commodity trading.

Additionally, the regulator is exploring the introduction of depository receipts backed by units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). This structural innovation would enable foreign investors to gain exposure to India's real estate and infrastructure sectors through tradable instruments, without requiring direct ownership of underlying assets.

These measures reflect Sebi's strategy to deepen and diversify foreign investor participation in Indian markets while maintaining regulatory safeguards and market integrity.