Palazhi Ashok Kumar mumbai

 The Securities and Exchange Board of India (SEBI) is considering allowing net settlement of single-day trades by foreign portfolio investors in a move aimed at improving operational efficiency and lowering transaction costs, chairman Tuhin Kanta Pandey said on Wednesday.

“Even as domestic participation rises, foreign investors remain central to our markets. Foreign investors and India have shared a symbiotic relationship—since India opened to FPIs in 1992, portfolio flows have delivered an XIRR of 9.3%. Total FPI assets under custody stand at $876 billion as at end-September 2025, and FPIs today hold around 17% of the equity in listed companies,” Pandey noted.

“At present, FPIs must give and take delivery for every trade. We are examining whether netting settlements for trades executed on a single day may be permitted. This would provide greater operational convenience and reduce costs,” he added.

SEBI has revamped the FPI registration module to make it faster and more user-friendly, and has introduced a “light-touch” regulatory regime for investors focused solely on government securities. The new SWAGAT framework will serve as a diplomatic-style passport, granting trusted, low-risk investors smoother access to Indian markets.

Further reforms include an enhanced anchor-investor framework in IPOs to facilitate participation by large FPIs operating multiple funds, with the anchor quota now extended to long-term investors such as life insurers and pension funds. The India Market Access portal now consolidates all regulatory and procedural information for FPIs in a single platform.

Pandey said the block-window framework had undergone a comprehensive review to deepen market liquidity, and that upcoming reforms seek to provide a “best-in-class experience” for global investors.

SEBI is also advancing end-to-end digitisation of the registration process, employing digital signatures to make onboarding fully paperless. The regulator aims to cut registration timelines from months to mere days, with data-privacy safeguards built in.

To improve service quality, a second platform for FPI registration is being developed by CDSL. In addition, SWAGAT-recognised FPIs may be allowed to invest through other routes permitted under FEMA without additional compliance burdens. “We are engaged with the RBI and the Ministry of Finance to take these initiatives forward,” Pandey said.

Sebi cautions against unregistered Online Bond Platform Providers 

Sebi on Wednesday asked investors to exercise caution and avoid transacting on unregistered Online Bond Platform Providers (OBPPs), saying they lack regulatory oversight and do not provide for any mechanisms for investor protection, PTI reported. 

In its statement, the regulator asked investors to verify the registration status of the OBPPs  prior to transacting, and deal only with Sebi-registered entities, in order to safeguard their interests. Additionally, all market participants have been cautioned to ensure compliance with the applicable regulatory framework prior to offering any services in the nature of OBPP.