Ease of regulatory compliances for FPIs investing only in Government Securities

CIRCULAR
HO/(485)2026-AFD-POD2/I/20296/2026 September 07, 2026 To,

1. Foreign Portfolio Investors (FPIs)

2. Designated Depository Participants (DDPs) and Custodians

3. The Depositories
   Dear Sir / Madam,
   Subject: Ease of regulatory compliances for FPIs investing only in Government Securities

4. SEBI vide circular dated September 10, 2025 amended the “Master Circular for
   Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors” No. SEBI/HO/AFD/AFD-PoD-2/P/CIR/P/2024/70 dated May 30, 2024 (hereinafter referred to as “Master Circular”) to facilitate ease of regulatory compliances for ‘FPIs investing only in Government Securities’.

5. Accordingly, the following sub para was inter alia inserted under Para 1 of Part A
   of the Master Circular:
   “FPIs that invest exclusively in Government Securities under Fully Accessible Route shall not be required to furnish investor group details.”

6. With a view to provide greater ease of investment to FPIs, Reserve Bank of India
   vide circular dated June 05, 2026, has inter alia withdrawn the requirement for FPIs investing in Government Securities through the General Route to comply with the prescribed concentration limit. Consequently, the requirement for identification of investor group by an FPI investing only in Government Securities is no longer relevant and is therefore being removed.

7. Accordingly, the aforementioned sub-para under Para 1 of Part A of the Master
   Circular stands modified as follows:
   “FPIs investing only in Government Securities shall not be required to furnish investor group details.”

8. Depositories, Custodians and Designated Depository Participants are advised to
   make necessary changes in their systems to effect the changes proposed above.

9. The provisions of this circular shall come into force with immediate effect.

10. This Circular is issued in exercise of the powers conferred under Section 11(1) of
    the Securities and Exchange Board of India Act, 1992 read with Regulations 22(1), 22(3), 22(5) and 44 of SEBI (Foreign Portfolio Investors) Regulations, 2019 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.

11. This Circular is available at www.sebi.gov.in under the link “Legal ---Circulars”.
    Yours faithfully,
    Manish Kumar Jha
    Deputy General Manager
    Tel No.: 022-26449219
    E-mail: manishkj@sebi.gov.in