SEBI Plans to Ease Foreign Investor Access, Says Tuhin Kanta Pandey

SEBI’s Strategic Moves to Enhance Foreign Investor Participation in Indian Markets

The Securities and Exchange Board of India (SEBI) is taking significant steps to facilitate foreign investment, aiming to streamline processes and enhance market accessibility.

Streamlining Digital Onboarding for Foreign Investors

One of SEBI’s primary focuses is to simplify the digital onboarding process for foreign investors. This initiative is part of a broader strategy to reduce friction throughout the investment journey. Pandey highlighted that the SWAGAT-FI framework, which became operational on June 1, 2026, has already attracted approximately 205 foreign portfolio investors (FPIs). This framework is designed to expedite onboarding for trusted, low-risk investors, making it faster and more efficient.

Expanding Participation in Commodity Derivatives

In addition to enhancing onboarding processes, SEBI is also looking to broaden foreign participation in non-agricultural commodity derivatives. This move is expected to deepen market engagement and resilience, allowing foreign investors to tap into India’s growing commodity markets. The regulator is leveraging technology, including digital workflows and application programming interfaces, to streamline these processes further.

Innovative Financial Instruments and Frameworks

SEBI is also exploring the introduction of depository receipts linked to units of real estate investment trusts (REITs) and publicly listed infrastructure investment trusts (InvITs). This innovation aims to attract more foreign capital into India’s real estate and infrastructure sectors, which are crucial for economic growth. Furthermore, the regulator is reviewing the Accredited Investor framework and considering proposals that would allow investments in foreign securities.

Enhancing Market Infrastructure and Risk Management

To bolster market infrastructure, SEBI is working on a market-making framework for corporate bonds, which will address liquidity, infrastructure, and repo access. This initiative is complemented by consultations on Fixed Income Channel Partners to expand distribution through regulated online bond platforms. Additionally, a proposed Credit Risk-o-Meter aims to simplify credit risk assessment for investors, enhancing their decision-making capabilities.

Future Outlook and Investor Confidence

Pandey emphasized that SEBI’s overarching goal is to reduce unnecessary friction, deepen market engagement, and strengthen safeguards where risks are evident. By fostering a more accessible and resilient investment environment, SEBI aims to boost foreign investor confidence in the Indian markets, ultimately contributing to the country’s economic growth.

Key Highlights

• SEBI is simplifying digital onboarding for foreign investors to enhance accessibility.
• Approximately 205 FPIs are already utilizing the SWAGAT-FI framework.
• Plans to expand foreign participation in non-agricultural commodity derivatives are underway.
• Introduction of depository receipts linked to REITs and InvITs is being explored.
• SEBI is enhancing market infrastructure for corporate bonds and improving risk assessment tools.

Investor Note: SEBI’s initiatives to ease foreign investor access could significantly enhance market participation and liquidity, presenting new opportunities for investors looking to capitalize on India’s growth potential.