Sebi simplifies framework for SWAGAT-FI system

Markets regulator Sebi recently simplified the operational guidelines for onboarding Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs), along with compliance requirements, under the single window access system.

Under the revised framework, an eligible SWAGAT-FI (Single Window Automatic & Generalised Access for Trusted Foreign Investors) applicant can apply for FVCI registration, along with FPI registration without submitting separate application forms or documents, provided the same custodian and Designated Depository Participant (DDP) are appointed for both registrations, according to two separate circulars issued by Sebi.

Existing FVCIs that meet SWAGAT-FI eligibility can also convert to SWAGAT-FI status by applying through their DDP under the same condition.

Sebi said renewal requirements for FVCIs have been streamlined, with SWAGAT-FI FVCIs required to renew their registration every 10 years, instead of five, along with payment of fees and intimation of any changes in information. Further, the periodicity of KYC review for SWAGAT-FI FVCIs has been extended to 10 years.

For FPIs, the FPI Master Circular has been amended to incorporate the SWAGAT-FI framework, whereby certain contribution-related restrictions do not apply to SWAGAT-FI FPIs, subject to specific conditions for resident Indian contributions through the Liberalised Remittance Scheme (LRS).

The framework defines eligible SWAGAT-FI FPIs to include government and government-related investors, appropriately regulated retail mutual funds, insurance companies investing proprietary funds, and pension funds, subject to prescribed safeguards.

FPIs meeting the eligibility criteria may convert to SWAGAT-FI status by applying to their DDP. Additionally, depositories are required to enable a unified investment and accounting experience for SWAGAT-FI investors, allowing securities held as FPIs, FVCIs, or other eligible foreign investors to be maintained seamlessly.