Politics · India Bureau
Sebi relaxes investor disclosure norms for foreign portfolio investors in government bonds
India's market regulator has extended a regulatory concession for foreign portfolio investors purchasing government securities through the Fully Accessible Route, easing group disclosure requirements. The measure builds on relaxations first introduced in September 2025.
LSN India ·
The Securities and Exchange Board of India (Sebi) has broadened exemptions from investor group disclosure requirements for foreign portfolio investors (FPIs) channelling funds into Indian government bonds via the Fully Accessible Route (FAR).
The regulator's latest action extends relief measures that were initially rolled out in September 2025 specifically for FPIs with exposure limited to government securities. By further relaxing disclosure norms, Sebi aims to reduce compliance burdens for foreign investors focused on India's sovereign debt market.
Investor group disclosure rules typically require entities to reveal associated investors and ownership structures to ensure regulatory transparency. The exemption granted to FAR-based government bond investors acknowledges the lower risk profile of sovereign debt investments compared to equity or corporate bond exposures.
The move is expected to streamline capital inflows into government securities and make India's bond market more accessible to overseas institutional investors. FPIs have been substantial purchasers of Indian government bonds, with their participation considered important for market depth and liquidity.
Sebi's regulatory framework continues to balance investor protection with market development objectives, particularly as India seeks to deepen its debt capital markets and attract stable foreign capital.