SEBI Simplifies FPI Compliance With Longer KYC Cycles

Foreign portfolio investors will soon face fewer routine compliance checks in India. The Securities and Exchange Board of India has lengthened the KYC review cycles for FPIs, a change that is expected to reduce the frequency of paperwork for many overseas investors.

SEBI issued the circular on Friday, October 30. It extends the review period for one category from one year to two years, and for another from three years to eight years.

The revised norms will be applicable from December 1, 2026.

The regulator said the change follows its ongoing efforts to simplify compliance for FPIs. The existing system requires these investors to undergo periodic KYC reviews, either annually or once every three years, depending on their category and other standards. The new structure aligns these timelines with a longer cycle.

Certain categories are not affected. The KYC review period for Swagat-FI FPIs remains at 10 years, and the current exemption for GS-FPIs continues unchanged.

SEBI has also removed the requirement for a separate confirmation process related to changes in previously submitted information at the time of continuing registration.

According to the regulator, these steps will help consolidate similar requirements, lower repeated compliance and ease the burden on FPIs. The circular describes the move as part of a larger drive to create a transparent, efficient and investor-friendly regulatory environment that supports ease of doing business.