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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Ease of regulatory compliances for FPIs investing only in Government Securities

10-Sep-2025 | SEBI/HO/AFD/AFD-PoD-3/P/CIR/2025/127

SEBI has issued a circular regarding the Ease of doing regulatory compliance for FPIs investing only in Government Securities, effective from 8th February 2026.

By virtue of this circular, SEBI has amended the provisions of the "Master Circular for Foreign Portfolio Investors, Designated Depository Participants, and Eligible Foreign Investors" (FPI Master Circular) to incorporate guidelines for investment in government securities, thereby facilitating ease of regulatory compliance for 'FPIs investing only in Government Securities' (GS-FPIs). Few of them are stated below:

1. Under Para 1 of Part A of FPI Master Circular, a sub-para has been inserted specifying that the FPIs that invest exclusively in Government Securities under Fully
Accessible Route shall not be required to furnish investor group details.
2. Para 19 has been inserted in Part A specifying the procedure and mechanism for transition between regular FPI and GS-FPI.
3. In Para 5 of Part B, which is regarding "Periodic KYC Review", a new sub-para(ii) has been inserted after sub-para (i), specifying that the periodicity of KYC review by custodians shall be harmonised with the applicable periodicity of KYC review of their respective bank accounts in case of GS-FPIs.

Kindly refer to the attached document for more information.

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