SEBI Unifies Access for FPI and Venture Capital: Single-Window Entry and Full Investment Flexibility Unlocked
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure
Ministry of Finance | Securities and Exchange Board of India (SEBI)
SEBI has issued synchronized amendments to its Foreign Portfolio Investor (FPI) and Foreign Venture Capital Investor (FVCI) regulations, officially establishing the SWAGAT-FI framework (Single Window Automatic and Generalised Access for Trusted Foreign Investor) to drastically simplify market access for high-quality institutional capital. Both sets of amendments were notified on December 1, 2025, and will come into full force 180 days thereafter.
SWAGAT-FI framework is for objectively identified, low-risk foreign entities (such as sovereign wealth funds and central banks). Its primary goal is to provide a single, unified registration to operate seamlessly across both the FPI and FVCI regimes, minimizing regulatory friction to attract stable, large-scale capital into Indiaβs growth sectors.
The overarching strategy is to unify access and grant maximum flexibility:
Unified Access (FPI Amendment): The FPI Regulations define the new SWAGAT-FI category, which primarily includes Government and Government-related investors and Public retail funds. This framework provides a single, consolidated registration status for eligible entities. Furthermore, SEBI has expanded the ability of domestic registered mutual funds to be a constituent of the FPI applicant, subject to specified conditions.
Investment Flexibility (FVCI Amendment): The FVCI Regulations provide the crucial functional relaxation to SWAGAT-FIs by exempting them from all investment allocation limits.
This removes the mandatory minimum investment of 66.67% in unlisted securities (the core FVCI mandate).
It also removes the limit of 33.33% on investment in specified securities.
Impact: This grants SWAGAT-FIs complete discretion to allocate their funds flexibly across both Indiaβs listed (FPI) and unlisted (FVCI) markets.
Compliance Ease: Both amendments streamline the administrative burden, requiring registration fees to be paid in advance for a block of ten years, rather than shorter cycles, providing greater certainty and efficiency for long-term institutional investors.
Policy Relevance
This coordinated regulatory action is pivotal for accelerating the flow of stable, long-term capital by minimizing friction for trusted institutional investors. By granting full flexibility on investment allocation, SEBI is encouraging consolidated funds to be channeled efficiently across both the public and venture capital markets. This strategy strengthens Indiaβs market transparency, lowers operational costs, and positions the Indian capital market as a globally competitive destination for attracting the institutional capital necessary for achieving the Viksit Bharat goal.
Follow the full report here: Securities And Exchange Board Of India (Foreign Venture Capital Investors) (Amendment) Regulations, 2025