SEBI extends foreign portfolio investor KYC review intervals to two or eight years and removes registration continuance declarations

The Securities and Exchange Board of India (SEBI) has amended its foreign portfolio investor (FPI) framework to extend standard know your customer (KYC) review intervals from one or three years to two or eight years, depending on the investor’s classification and jurisdiction. It also removes the requirement to report changes in previously submitted information or provide a declaration of no changes when continuing registration. Both changes take effect December 1, 2026. Category I FPIs in jurisdictions not classified as high risk will undergo KYC reviews every eight years. In high risk jurisdictions, that interval will apply only to Category I investors registered under Regulation 5(a)(i) of the SEBI (Foreign Portfolio Investors) Regulations, 2019, covering government and government related investors. Other Category I FPIs in high risk jurisdictions will require reviews every two years. Category II FPIs will require reviews every two years, except regulated entities in jurisdictions not classified as high risk, which qualify for reviews every eight years. The existing review cycle of 10 years under the Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework remains unchanged. FPIs investing only in government securities will retain review intervals aligned with those prescribed by the Reserve Bank of India for their respective bank accounts. The longer KYC intervals do not alter registration continuance blocks, which remain three years for standard FPIs and 10 years for SWAGAT-FI investors. Fees must be paid to designated depository participants at least 15 days before the current registration validity expires. Depositories, custodians and designated depository participants must update their systems and processes to implement the changes.