Sebi and RBI Join Forces to Streamline FPI Onboarding and Enhance Bond Market
The collaboration between Sebi and RBI aims to simplify processes for foreign investors and bolster India’s bond indices.
The Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) are actively working to simplify the onboarding process for foreign portfolio investors (FPIs) while also developing bond indices for exchanges. This initiative is expected to enhance the investment landscape in India.
Aiming for Seamless FPI Registration
During the annual conclave of the Association of Portfolio Managers in India, Sebi Chairman Tuhin Kanta Pandey highlighted the ongoing efforts to make FPI registration faster, more seamless, and entirely digital. The collaboration between Sebi and RBI aims to address existing challenges in the onboarding process, with a goal of achieving a more efficient registration system.
Recent tests have shown that onboarding can be completed within five working days for certain jurisdictions, thanks to the involvement of custodians and depositories. This rapid onboarding process is a significant improvement over previous timelines, which often involved lengthy documentation and verification procedures.
Digital Transformation in Onboarding
Sebi is also pushing for digital onboarding, allowing FPIs to submit documents with digital signatures, eliminating the need for physical signatures that previously required notarization. This shift not only speeds up the process but also aligns with global best practices in financial services.
Additionally, the National Securities Depository Limited (NSDL) has revamped its front-end systems, and the India Market Access portal has been launched to centralize information for FPIs, including documentation requirements and frequently asked questions. These initiatives represent a significant step towards a more investor-friendly environment.
Enhancing the Bond Market
On the bond market front, Pandey indicated that Sebi is working on developing bond indices that can be integrated into exchanges. The RBI has prepared draft guidelines for these indices and is currently seeking feedback from stakeholders. This move is expected to enhance transparency and liquidity in the bond market, making it more attractive to both domestic and foreign investors.
Growth of Portfolio Management Services
Pandey also shared insights into the growth of the portfolio management services (PMS) sector, noting that assets under management have surged to approximately ₹9.2 trillion as of August 2026, up from ₹1.4 trillion at the end of FY16. This growth reflects an annual increase of around 20%, indicating a robust demand for professional investment management.
The new PMS framework introduced by Sebi aims to widen investment options and simplify compliance for portfolio managers. It allows for the use of direct mutual fund plans, including ETFs and index funds, with a minimum investment of ₹25 lakh, thereby making it easier for investors to access diverse investment strategies.
Key Highlights
- Sebi and RBI are collaborating to streamline FPI onboarding and registration processes.
- Digital onboarding will allow FPIs to submit documents electronically, expediting the process.
- Bond indices are being developed to enhance transparency and liquidity in the bond market.
- Assets under management in the PMS sector have grown significantly, reaching ₹9.2 trillion.
- Sebi’s new PMS framework aims to simplify regulations and widen investment options for clients.
Investor Note: The collaborative efforts between Sebi and RBI to streamline FPI onboarding and enhance the bond market could significantly improve India’s investment climate, attracting more foreign capital and fostering growth in the financial sector.
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