Rationalisation of periodicity of KYC review for FPIs

CIRCULAR
HO/19/34/14(10)2026-AFD-POD3/I/24814/2026
October 30, 2026

To,

1. Foreign Portfolio Investors (FPIs)

2. Designated Depository Participants (DDPs) and Custodians

3. The Depositories

4. The Stock Exchanges and Clearing Corporations

Dear Sir / Madam,

Subject: Rationalisation of periodicity of KYC review for FPIs

1. Para 5 of Part B of the Master Circular for FPIs, DDPs and Eligible Foreign Investors dated May 30, 2024, as amended from time to time (“Master Circular”), provides for KYC review of FPIs annually or every three years, depending upon the jurisdiction, category and regulated status of the FPI. Separately, Para 4 of Part A of the Master Circular requires an FPI (other than FPIs investing only in Government Securities, hereinafter referred as ‘GS-FPIs’) to intimate changes in previously furnished information or submit a no-change declaration at the time of continuance of registration.

2. With a view to rationalise these requirements, reduce compliance burden and promote Ease of Doing Business, it has been decided:

2.1.To increase the periodicity of KYC review of FPIs. The provisions related to periodicity of KYC review applicable to GS-FPIs and SWAGAT-FI FPIs to remain unchanged.

2.2.To dispense with the requirements relating to intimation of change in information at the time of continuance of registration.

3. Accordingly, the Master Circular shall stand modified as under:

3.1.Para 4 of Part A shall be modified as follows:

(a) Sub-paragraph (i) shall be substituted as under:

“i. FPI who wish to continue with their registration for the subsequent block of three years (10 years in case of SWAGAT-FI) shall pay the fees to their DDP.”

(b) Sub-paragraph (ii) shall be omitted.

(c) Sub-paragraph (iii) shall be renumbered as (ii) and substituted as under:

“ii. FPI shall pay the fees for continuance of its registration at least 15 days prior to current validity of its registration in order to facilitate a smooth continuance process.”

(d) Existing sub-paragraphs (iv) to (ix) shall be renumbered as sub-paragraphs (iii) to (viii), respectively.”

3.2.Para 5 of Part B shall be modified as follows:

(a)Table 6 under sub-para (i) shall be substituted as under:

Table 6

Jurisdiction	FPI Category – I	FPI Category – II
High Risk	Registered under Regulation 5(a)(i) – every 8 years Others – every 2 years	Every 2 years
Non-High Risk	Every 8 years	Regulated entities – every 8 years Others – every 2 years

3.3.In the Investor Charter for Designated Depository Participants at Annexure-H, under the heading “TIMELINES PERTAINING TO VARIOUS SERVICES PROVIDED BY DDP”, the entry in the column “Expected Timelines” against serial number 4 (“KYC Review / Update”) shall be substituted as under:

Jurisdiction	FPI Category – I	FPI Category – II
High Risk	Registered under Regulation 5(a)(i) – every 8 years Others – every 2 years	Every 2 years
Non-High Risk	Every 8 years	Regulated entities – every 8 years Others – every 2 years

भारतीय प्रतिभूति और विनिमय बोर्ड Securities and Exchange Board of India

In case of GS- FPI: as per periodicity of KYC review applicable to their respective bank accounts, as prescribed by RBI.
In case of SWAGAT-FI FPI: 10 years.

4. Depositories, Custodians and DDPs shall make necessary changes in their systems and processes to give effect to the provisions of this circular, and shall bring the same to the notice of FPIs concerned.

5. The provisions of this circular shall come into force with effect from December 01, 2026.

6. 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 Regulation 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.

7. 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