What's SWAGAT-FI, SEBI's framework to simplify registration for foreign investors
What's the story
The Securities and Exchange Board of India (SEBI) has announced the rollout of the Single Window Automatic and Generalized Access for Trusted Foreign Investors (SWAGAT-FI) framework. The new system is designed to simplify the registration process and compliance for foreign investors. It provides a single registration facility across various investment routes for Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs).
Regulatory relief
It reduces regulatory burden on investors
The SWAGAT-FI framework also aims to cut down on repetitive compliance requirements and documentation. This move is aimed at easing the regulatory burden on eligible investors. Both existing and new FPIs that meet the eligibility criteria will be able to avail of the benefits of this new system, SEBI has said in two circulars issued on Friday.
Target beneficiaries
Framework targets specific investor categories
The SWAGAT-FI framework is mainly aimed at SEBI-registered investors such as central banks, sovereign wealth funds, suitably regulated and broad-based mutual funds, insurance companies, and pension funds. The new system comes after amendments to the SEBI (FPI) Regulations, 2019 and the SEBI (FVCI) Regulations, 2000. These changes paved the way for introducing SWAGAT-FI for FPIs and FVCIs.