The Securities and Exchange Board of India (SEBI) on Friday approved the Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework for Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs).
Key objectives of SWAGAT-FI
The framework is designed to:
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Facilitate easier investment access for objectively identified and verifiably low-risk foreign investors.
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Enable a unified registration process across multiple investment routes.
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Minimize repeated compliance requirements and documentation for such investors.
Who qualifies as SWAGAT-FI?
Foreign investors eligible under this framework include:
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Government and government-related investors, such as sovereign wealth funds, central banks, and international organizations.
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Public Retail Funds (PRFs) such as mutual funds, pension funds, and insurance companies that are appropriately regulated and diversified.
Relaxations for investors
Investors categorized as SWAGAT-FIs will get several benefits, including:
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Option to register as both FPI and FVCI without additional documentation.
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Exemption from the rule requiring FVCIs to invest at least 66% in eligible unlisted assets.
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Extended registration validity for 10 years instead of the standard three years.
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Option to use a single demat account for all securities acquired under different routes.
Why this matters
The SWAGAT-FI framework is expected to reduce regulatory complexity, simplify compliance, and boost India’s competitiveness as a preferred global investment destination. A six-month timeline has been set for full implementation of the framework.
