The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are collaboratively working to significantly speed up and simplify the registration process for Foreign Portfolio Investors (FPIs). Their joint efforts aim to reduce the onboarding time to just five working days, a target successfully tested for specific jurisdictions.
Digital Transformation for Foreign Investors
SEBI Chairman Tuhin Kanta Pandey emphasized the regulators' commitment to removing bottlenecks and making FPI onboarding more seamless. Speaking at the Association of Portfolio Managers in India (APMI) annual conclave, Pandey highlighted the progress made and the ongoing push for further simplification.
The core of this initiative is a shift towards a technology-driven, paperless registration system. Key advancements include:
- Revamped NSDL Front End: SEBI has overhauled the National Securities Depository Limited (NSDL) platform.
- India Market Access Portal: A new portal consolidates registration requirements, FAQs, and documentation in one accessible location.
- E-Signatures: Acceptance of digital signatures eliminates the need for physical notarization and apostillization.
- E-Powers of Attorney: Moving away from physical powers of attorney reduces reliance on paper documentation.
RBI's Role in Streamlining Processes
The RBI is also playing a crucial role in this digital transformation. It has authorized corresponding branches of foreign commercial banks to certify documents, easing a previous procedural hurdle. Furthermore, the central bank is actively exploring the use of the SWIFT network for uploading FPI registration documents, which would further reduce procedural friction for overseas investors seeking access to Indian markets.
Both regulators are also working to streamline Know Your Customer (KYC) requirements, ensuring a more coordinated approach between SEBI, RBI, custodians, and depositories.
Broader Market Initiatives
Beyond FPI onboarding, SEBI and RBI are also collaborating on developing a framework for bond indices that can be integrated onto exchanges. This move aims to enhance the depth and accessibility of India's bond markets.
These reforms come as India's portfolio management industry continues its robust growth, with assets under management (excluding PF and EPFO assets) reaching approximately ₹9.2 trillion by August 2026. The industry has seen an annual growth rate of around 20% over the past decade, underscoring the importance of efficient regulatory processes to sustain this momentum and attract more foreign capital.