SEBI SWAGAT-FI Framework: Unified Access Route for Low-Risk Foreign Investors

On 16 January 2026, the Securities and Exchange Board of India introduced a new, simplified entry mechanism for certain categories of trusted foreign investors through the Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework. This framework, brought in via a circular and aligned with the SEBI (Foreign Portfolio Investors) (Second Amendment) Regulations, 2025, significantly eases registration and compliance norms for specified low-risk, well-regulated foreign entities.

The changes have been implemented by modifying the existing “Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors” No. SEBI/HO/AFD/AFD-PoD2/P/CIR/P/2024/70 dated May 30, 2024 (the FPI Master Circular).

The circular, bearing reference Securities and Exchange Board of India Circular No. HO/19/34/14(5)2025-AFD-POD2/I/2703/2026, is directed to:

  • Foreign Portfolio Investors (FPIs)
  • Designated Depository Participants (DDPs) and Custodians
  • Depositories
  • Stock Exchanges and Clearing Corporations

Its primary intention is to provide a single-window, harmonised, and long-tenure access route for foreign investors that are considered systemically low-risk and subject to robust regulatory oversight in their home jurisdictions.

Background and Regulatory Context

Linkage with Existing FPI Framework

The SWAGAT-FI mechanism is not a standalone framework; it has been woven into the existing FPI regime through targeted amendments:

  • The FPI Master Circular lays down norms for FPI registration, KYC and investment conditions.
  • The SEBI (Foreign Portfolio Investors) (Second Amendment) Regulations, 2025 notified on December 03, 2025, modified the SEBI (Foreign Portfolio Investors) Regulations, 2019 specifically to enable the SWAGAT-FI regime.

Accordingly, SEBI has now:

  1. Incorporated special provisions for SWAGAT-FI FPIs into the FPI Master Circular.
  2. Provided operational relaxations and clarified eligibility standards.
  3. Aligned KYC periodicity and registration tenure with the lower-risk profile of such entities.

Note: The SWAGAT-FI framework becomes operative from June 01, 2026, giving market intermediaries time to update their systems and processes.

Key Structural Features of SWAGAT-FI

1. Relaxation on Resident Indian Contributions

Under Para 1 of Part A of the FPI Master Circular, following sub-para (ii)(da), a new sub-para has been inserted specifically for SWAGAT-FI FPIs. This provision relaxes an earlier restriction applicable under clause (b), but only for SWAGAT-FI FPIs and subject to strict safeguards.

The new sub-para provides:

“db. The provision mentioned at (b) above shall not apply to SWAGAT-FI FPI. However, it shall be subject to the provision that contribution of resident Indian individuals shall be made through the LRS notified by RBI and shall be in global funds whose Indian exposure is less than 50%.”

In practice, this means:

  • Resident Indian individuals can contribute to such foreign funds,
  • But only if the contribution is routed under the Liberalised Remittance Scheme (LRS) notified by the RBI, and
  • The fund must be a global fund where India-focused investments are less than 50% of the overall portfolio.

This creates a carefully ring-fenced route for limited resident participation without altering the low-risk profile of SWAGAT-FI entities.

2. Eligibility Criteria for Registration as SWAGAT-FI FPI

A new sub-para vi. Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) has been added under Para 2 of Part A of the FPI Master Circular.

I. Categories of Eligible Applicants

The following types of entities may seek registration as SWAGAT-FI FPI: