Sebi removes FPI investor group filing rules for G-Sec trades
India's regulator dropped the mandate for foreign investors to submit group details when buying government bonds, citing a recent Reserve Bank of India circular that withdrew concentration limit requirements.
The Securities and Exchange Board of India (Sebi) eliminated the rule forcing foreign portfolio investors to file specific group identification documents when trading exclusively in government securities. Sebi announced Monday that this compliance requirement is no longer relevant for such transactions. This decision follows a circular issued by the Reserve Bank of India on June 5, 2026, which removed the prescribed concentration limit obligation for foreign funds accessing government bonds via the general route. Depositories and custodians are now required to update their systems to reflect this immediate change. The adjustment simplifies procedures for foreign capital flowing into Indian sovereign debt.
