SEBI to Review Foreign Investor Rules to Align With Global Standards

The Securities and Exchange Board of India (SEBI) is preparing a consultation paper to relax disclosure and compliance regulations for Foreign Portfolio Investors (FPIs). Chairman Tuhin Kanta Pandey announced the initiative during the Business Standard BFSI Insights Summit on October 28, 2026, acknowledging that some Indian requirements remain more onerous than those in other major jurisdictions.

The proposed changes target granular disclosure rules implemented after Hindenburg Research's allegations against the Adani Group. Current regulations require FPIs to reveal ultimate beneficial owners if their Indian equity assets exceed ₹50,000 crore or if more than 50% of assets are concentrated in one corporate group. SEBI is considering a low threshold for equity holdings below which disclosures are unnecessary, as well as exemptions for FPIs invested in public sector undertakings or professionally-run companies without identifiable promoters.

These efforts follow other initiatives to ease foreign participation, such as the SWAGAT-FI framework and simplified digital onboarding. A net settlement system for eligible cash-market transactions is expected to be operational by December. During the summit, Pandey also addressed the potential revival of closed regional exchanges, such as the Calcutta Stock Exchange, stating that any such return would depend on commercial viability, sustainable business plans, and the ability to manage technology-driven risks.