SEBI Chair Tuhin Kanta Pandey to Issue Consultation Paper on FPI Compliance Norms

SEBI chairman Tuhin Kanta Pandey said on Wednesday that the regulator will review foreign portfolio investor (FPI) compliance requirements and issue a consultation paper to align Indian norms with global standards. The remarks were made at the Business Standard BFSI Insights Summit in Mumbai.

India’s FPI market has been a key source of capital, yet the country’s rules are seen as more onerous than in other major jurisdictions. Pandey noted that the review seeks to facilitate greater foreign investor participation while keeping investor protection and market integrity intact.

The proposed changes will target procedural bottlenecks that delay approvals and increase costs for overseas investors. The regulator intends to preserve safeguards that prevent market manipulation and fraud.

A consultation paper will be released shortly to gather views from industry stakeholders and international experts. The paper is expected to outline revised compliance thresholds and reporting timelines.

Industry analysts say the review could boost FPI inflows, potentially adding billions to the domestic capital market. If approved, the changes might reduce administrative costs for firms and speed up settlement cycles.

The next step is a stakeholder consultation period set to conclude in early September, after which SEBI will announce the final framework.