SEBI relaxes KYC review cycles for Foreign Portfolio Investors

The Securities and Exchange Board of India (SEBI) has announced a rationalization of Know Your Customer (KYC) review periodicity for Foreign Portfolio Investors (FPIs) to simplify compliance and promote ease of doing business. The new regulations, which take effect on December 1, 2026, will extend review cycles for certain investors to eight years.

Under the revised framework, Category I FPIs from non-high-risk jurisdictions and regulated Category II FPIs from non-high-risk jurisdictions will undergo KYC reviews every eight years. For Category I FPIs from high-risk jurisdictions registered under Regulation 5(a)(i), the review cycle will also be eight years. Other Category I FPIs and all Category II FPIs from high-risk jurisdictions will be reviewed every two years.

The changes also dispense with the requirement for FPIs to intimate changes in previously furnished information or submit no-change declarations during registration continuance. Existing review periodicities for Government Securities-only FPIs (GS-FPIs) and SWAGAT-FI FPIs will remain unchanged.