SEBI Circular dated October 30, 2026 | Effective December 1, 2026
The Securities and Exchange Board of India (SEBI) has introduced significant relaxations in the periodic Know Your Customer (KYC) review requirements applicable to Foreign Portfolio Investors (FPIs).
Through its circular dated October 30, 2026, titled Rationalisation of Periodicity of KYC Review for FPIs, SEBI has extended KYC review intervals for specified categories of FPIs and removed the requirement to separately intimate changes in previously submitted information, or submit a no-change declaration, at the time of continuation of registration.
The amendments are aimed at reducing repetitive compliance requirements, easing the regulatory burden on foreign investors and promoting Ease of Doing Business in the Indian securities market.
1. Revised Periodicity of KYC Review
SEBI has substituted Table 6 under Para 5 of Part B of the Master Circular for FPIs, DDPs and Eligible Foreign Investors dated May 30, 2024.
Under the revised framework, the KYC review frequency will depend on the FPI category and whether the investor belongs to a high-risk or non-high-risk jurisdiction.
The revised framework provides an eight-year KYC review cycle for several categories of FPIs, replacing the shorter review intervals under the earlier framework.
2. Existing Exemptions for GS-FPIs and SWAGAT-FI Remain Unchanged
SEBI has clarified that the existing KYC review periodicity applicable to the following categories will remain unchanged:
Government Securities FPIs (GS-FPIs): KYC review will continue in accordance with the periodicity applicable to their respective bank accounts, as prescribed by the Reserve Bank of India (RBI).
SWAGAT-FI FPIs: The existing 10-year KYC review cycle will continue.
These categories will therefore continue under their existing review arrangements.
3. Removal of Separate Change Intimation and No-Change Declaration
Another important amendment concerns the continuation of FPI registration.
Previously, FPIs (other than GS-FPIs) were required to intimate changes in previously furnished information or submit a no-change declaration at the time of continuation of registration.
SEBI has now dispensed with this specific requirement.
This removes an additional procedural step during registration continuation and is intended to reduce repetitive compliance requirements for FPIs.
4. Revised Requirements for Continuation of Registration
SEBI has also revised Para 4 of Part A of the FPI Master Circular.
Under the amended provisions:
FPIs seeking continuation of registration for the subsequent block of three years must pay the applicable fees to their Designated Depository Participant (DDP).
For SWAGAT-FI FPIs, the continuation period remains 10 years.
The applicable continuation fees must be paid at least 15 days before the expiry of the existing registration validity.
The advance payment requirement is intended to facilitate a smoother registration continuation process.
5. Responsibilities of Depositories, Custodians and DDPs
SEBI has directed depositories, custodians and Designated Depository Participants to make the necessary changes to their systems and processes to implement the revised requirements.
They must also communicate the changes to the concerned FPIs.
This will require relevant stakeholders to review their existing KYC tracking mechanisms, compliance calendars and internal processes to reflect the revised review intervals.
6. Effective Date
The provisions of the circular will come into force from December 1, 2026.
All concerned stakeholders should align their systems and processes with the revised requirements before the effective date.
7. Key Takeaways
SEBI’s October 30, 2026 circular represents an important step towards simplifying the compliance framework for Foreign Portfolio Investors.
The key changes include:
Extension of KYC review periodicity to eight years for specified Category I and Category II FPIs.
Retention of the two-year review cycle for other specified FPI categories.
No change to the existing KYC review periodicity for GS-FPIs and SWAGAT-FI FPIs.
Removal of the separate change-intimation or no-change declaration requirement at the time of registration continuation.
Mandatory payment of continuation fees at least 15 days before the expiry of FPI registration.
Mandatory system and process updates by depositories, custodians and DDPs.
The changes are expected to reduce repetitive compliance work for eligible foreign investors while making the FPI registration continuation process more efficient.
Regulatory Reference:
SEBI Circular No. HO/19/34/14(10)2026-AFD-POD3/I/24814/2026 dated October 30, 2026.