SEBI and RBI Partner to Slash FPI Onboarding Timeline to Five Days — October 3, 2026

In a concerted drive to remove procedural friction for overseas capital entering Indian financial markets, the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are revamping the regulatory and operational onboarding framework for Foreign Portfolio Investors (FPIs).

Addressing market participants at the 3rd Annual Conclave of the Association of Portfolio Managers in India (APMI) in Mumbai, SEBI Chairman Tuhin Kanta Pandey affirmed that inter-regulatory coordination has intensified to make foreign investor registrations faster, simpler, and entirely digital.

Drastic Cut in Registration Turnaround

The regulators aim to cut FPI onboarding times to just five working days, down from historical turnaround times that often stretched past a month. The accelerated five-day process has already been tested successfully across selected jurisdictions, with Citi becoming the first designated depository participant (DDP) to demonstrate this turnaround via its digital eFPI platform.

The phased rollout initially targets regulated public funds, including mutual funds and unit trusts from key financial centers such as the United States, Ireland, and Luxembourg.

India’s total FPI Assets Under Custody (AUC) currently stand at approximately ₹78 lakh crore (around $800 billion). While acknowledging that regulators cannot dictate capital allocation decisions—which remain driven by global risk-reward dynamics and relative yields—Pandey stated that the authorities are committed to making India's domestic entry rails friction-free.

Digital-First Regulatory Architecture

To replace cumbersome paperwork, SEBI and the central bank are transitioning entirely away from physical documentation requirements that previously caused long administrative delays.

Key operational reforms include:

• Replacing Physical Notarisation: Investors can now leverage digital signatures and electronic PAN (e-PAN) processes, removing the requirement for physical apostillation and notarisation across eligible jurisdictions.
• Transition to e-PoA: Custodians and depositories have moved from paper-based powers of attorney to electronic powers of attorney (e-PoA).
• Overseas Branch Certification: The RBI has permitted overseas branches of Indian commercial banks and correspondent banks to certify investor documentation directly.
• SWIFT Integration: The central bank is actively exploring the use of the secure SWIFT messaging network for the transmission and uploading of FPI registration documents.
• Centralised Information: The deployment of SEBI's India Market Access portal serves as a unified gateway consolidating compliance requirements, documentation, and regulatory FAQs across SEBI, the RBI, and the Central Board of Direct Taxes (CBDT).

Expanding Fixed Income and Derivative Channels

Beyond equity flows, the coordination between SEBI and the RBI extends into developing India's bond markets. The regulators are collaborating on draft guidelines to introduce exchange-traded corporate bond indices and corresponding derivative instruments, enabling institutional investors to hedge credit and interest-rate risks efficiently.

During the address, Pandey also dispelled market speculation regarding exchange-level interoperability between the BSE and the National Stock Exchange (NSE), clarifying that no cross-trading platform framework is underway.

For domestic investors and market intermediaries, the ongoing rationalization of cross-border investment rules ensures that foreign institutional capital can be deployed into Indian assets with minimal lag, improving market efficiency and fixed-income liquidity.

Tags: SEBI RBI Foreign Portfolio Investors Capital Markets Banking