These proposals are designed to create a more inclusive investment environment, especially for Indian non-individual and mutual funds, allowing them to play a more important role in international investment schemes.
The proposed measures focus on expanding the scope of the participation of foreign portfolio investment (FPI) by residents through a series of regulatory changes. SEBI’s move is expected to pave the way for a wide range of investment options and increase the opportunity to diversify Indian investors. Departments Globally.
The counseling paper invites public feedback on these tips, which can have sufficient impact on the investment landscape.
Major proposal
- Retail plans in IFSCs: The proposal suggested enabling retail plans International Financial Services Center (IFSCs) In India, residents of Indian non-individual sponsors or managers, to register as FPIs. These schemes will be combined with existing investment rules for better clarity and access.
- Alignment of boundaries contributing: SEBI has proposed to align the contribution boundary to Indian non-individuals residents with IFSCA (Fund Management) Regulations, 2025. The move will contribute to the variety of funds operated within IFSCs, including the venture capital, restricted plans and retail plans.
- Indian mutual funds FPI as component: This proposal allows Indian mutual funds to become a component of FPI, which makes them capable of investing in foreign mutual funds or unit trusts with exposure to Indian securities. Its purpose is to streamline the investment process and increase the transparency of such investments.
background
Currently, under the SEBI Foreign Portfolio Investors (FPI) Regulations, 2019, residents of Indians, including NRIs (NRI) and foreign nationals, are banned from registering directly as FPIS.HOEVER, these individuals are allowed to contain FPI constitutions, which are against the boundaries and controls within the funds. Resident Indian non-individual people, Participation in FPI is allowed if they meet certain criteria, in which what kind of money they manage or sponsor and sponsoring and contributing to specific categories of money. The counseling paper comes when the government is looking to increase the role of IFSCs in India’s financial sector, with an eye to attract more global capital. By proposing to widen the scope for Resident Indian ParticipationSEBI aims to make the FPI route more accessible for a wide range of investors, including mutual funds, which can significantly diversify their foreign investments.
Proposals also reflect an effort to bring Indian financial rules in line with international standards, promoting a more dynamic and global investment environment.
Counseling process:
The public has been invited to present the comments on these proposals by August 29, 2025 through the SEBI website. SEBI’s move to open the process for public inputs underlines the importance of stake reaction in shaping policies affecting both retail and institutional investors.
The counseling process will probably affect the final regulatory structure and indicate a change towards more liberalized foreign investment rules for Indian participants.
With the introduction of these measures, the Indian investment community is designed to see significant changes that can reopen the method of operating FPI within India, offering a new path for development and diversification in global markets.
Also read: Paytm, Trent added between the top 6 shares, was removed in Motilal Oswal’s latest portfolio update. Check the details
,Rejuvenation: Recommendations, suggestions, thoughts and opinions given by experts are their own. They do not represent the ideas of economic time)