The Security and Exchange Board of India (SEBI) on May 13, 2025, issued the notification regarding the Consultation Paper on proposal to facilitate relaxation in regulatory compliances for FPI applicants investing only in Indian Government Bonds.
The following has been stated namely: -
• The objective is to achieve ease of doing business while also optimizing regulations through a risk-based framework, certain waivers/relaxations of extant registration requirements and regulatory obligations are proposed to be given to existing and prospective FPIs (“IGB-FPI”) that exclusively invest in Indian Government Bonds (“IGBs”) under Voluntary Retention Route (VRR) and Fully Accessible Route (‘FAR’).
• The following questions are raised for public comments namely: -
o Do you agree with the proposal to align the periodicity of KYC review for IGB-FPIs with the timelines prescribed by RBI for their regulated entities?
o Do you agree with the proposal to not require IGB-FPIs to furnish investor group details?
o Do you agree with the proposal to permit NRI/OCI/RI contribution in the corpus of IGB-FPI without any restrictions?
o Do you agree with the proposal to permit NRI/OCI/RI to be in control of IGB-FPI?
o Do you agree with the proposal to relax timelines for disclosure of material changes by IGB-FPI?
o Do you agree with the proposed timeline of 30 days for intimation of material changes (both Type I and Type II) and submission of supporting documents (if any) by IGB-FPIs.
• The comments/suggestions should be submitted latest by June 03, 2025, through the following link: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes4.2.
