SEBI has introduced a new single-window framework 'SWAGAT-FI' by changing IPO rules for foreign investors. This will simplify the registration and investment process for low-risk Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs). The validity period has been extended to 10 years, and investors are allowed to hold investments in a single demat account.
IPO SEBI Rules: The Securities and Exchange Board of India (SEBI) has introduced a new framework 'SWAGAT-FI', improving IPO rules for foreign investors. This will facilitate easier registration and investment for government-owned and low-risk foreign investors, reduce documentation, and extend the validity period to 10 years. This initiative aims to make India a more attractive investment destination and encourage FPI and FVCI investments.
What is SWAGAT-FI?
The new framework is named 'Single Window Auto-mated and Generalised Access for Trusted Foreign Investors'. SEBI Chairman Tuhin Kanta Pandey stated that this framework will make it easier for both low-risk Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs) to invest. Under this, investors can complete the registration and investment process through a single window.
Who will benefit?
SEBI clarified that this scheme will facilitate investors such as government-owned funds, central banks, sovereign wealth funds, multilateral institutions, insurance companies, and pension funds. The registration validity period has been extended from 3-5 years to 10 years. Additionally, investors will optionally be allowed to hold all investments in a single demat account.
Investment Process to be Easier
Under the SWAGAT-FI framework, the registration and investment process for low-risk investors has been simplified. The need for repeated submission of documents will be eliminated. This will make it simpler and faster for foreign investors to invest in the Indian market. This move is considered a significant step towards making India a more attractive destination for investment.
Large Companies Can Offer Small IPOs
SEBI also stated that after the implementation of this framework, large companies will be able to offer smaller IPOs. This will provide investors with opportunities to invest in startups and selected sectors. Registered investors will be able to invest as FPIs in listed equity and debt instruments and as FVCIs in startups and selected sectors.
Significant Contribution of Foreign Investors
As of June 2025, a total of 11,913 FPIs were registered in the country, with total assets estimated at INR 80.83 lakh crore. It is estimated that over 70 percent of these investors' assets will be held by SWAGAT-FI investors. This demonstrates the significant participation of foreign investors in the Indian market.
Timeline for Implementation of Rules
SEBI announced that the SWAGAT-FI framework will be fully implemented in the next six months, after the necessary procedural improvements are completed. This will provide foreign investors with convenience and transparency in the investment process. It will also increase the inflow of foreign capital into the Indian stock market and strengthen investor confidence.
SEBI's Objective
SEBI's objective is to simplify compliance for foreign investors and make India more attractive for investment. The SWAGAT-FI scheme will save investors time and resources. Additionally, the need for repeated registration and submission of documents will be eliminated.
Benefits for Investors
This new rule will offer several benefits to investors. First, the registration validity period will be 10 years. Second, investors will have the option to hold all investments in a single demat account. Third, investing in startups and selected sectors will become easier. Fourth, foreign investors will face fewer complexities when investing in India.
