SEBI Simplifies Compliance for Foreign Venture Capital Investors (FVCIs) Under SWAGAT-FI
SEBI has introduced the Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework, bringing significant compliance relief specifically for Foreign Venture Capital Investors (FVCIs).
The new framework simplifies onboarding, renewal, and KYC requirements for eligible FVCIs and reduces duplication where entities are registered both as FPIs and FVCIs.
What is SWAGAT-FI for FVCIs?
SWAGAT-FI is a single-window registration and compliance mechanism for trusted foreign investors.
For Foreign Venture Capital Investors, this means:
No duplicate applications
Fewer documents
Longer compliance cycles
Easier conversion from existing registrations
Key Simplifications for Foreign Venture Capital Investors
1️⃣ Single Window Registration for FVCIs
A SWAGAT-FI eligible Foreign Venture Capital Investor can now:
Apply for FVCI registration together with FPI registration
Avoid filing a separate FVCI application form
Rely entirely on documents already submitted for FPI registration
📌 Mandatory condition:
The FVCI must appoint the same Custodian and Designated Depository Participant (DDP) as its FPI registration.
2️⃣ Seamless Conversion for Existing FVCIs
Existing Foreign Venture Capital Investors who already qualify as SWAGAT-FI FPIs may:
Convert into SWAGAT-FI FVCIs
By submitting an application to their current DDP
Without any fresh documentation or re-onboarding
📌 The same Custodian and DDP must continue for both registrations.
3️⃣ Extended Renewal Period for FVCIs
SEBI has extended the renewal cycle specifically for SWAGAT-FI Foreign Venture Capital Investors:
Regular FVCIs: Renewal every 5 years
SWAGAT-FI FVCIs: Renewal every 10 years
This applies to:
FVCIs registered on or before 31 December 2019
FVCIs registered after 31 December 2019
Only renewal fees and updates to previously submitted information (if any) are required.
4️⃣ Relaxed KYC Review for FVCIs
For SWAGAT-FI Foreign Venture Capital Investors:
KYC review frequency has been extended to once every 10 years
This materially lowers ongoing compliance costs and operational effort for long-term foreign venture capital funds.
Effective Date
🗓 The SWAGAT-FI framework for FVCIs comes into effect from 1 June 2026.
Depositories, custodians, and Designated Depository Participants have been directed to make the necessary system-level changes.
Why This is Important for AIF Ecosystem
For Foreign Venture Capital Investors investing into Indian AIFs and startups, this reform:
Reduces compliance duplication
Speeds up fund onboarding
Improves investor experience
Strengthens India’s attractiveness for foreign venture capital
For fund managers and advisors, it enables simpler structuring and smoother investor onboarding.
Reference
SEBI Circular dated 16 January 2026 on Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI)