The Securities and Exchange Board of India (SEBI) has introduced a new regulatory framework titled Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI), aimed at streamlining market access for certain categories of Foreign Portfolio Investors (FPIs).

SEBI Chairman Tuhin Kanta Pandey stated that the initiative is designed to simplify registration and compliance procedures for investors considered relatively low risk.

Single Registration for Trusted Foreign Investors

The SWAGAT-FI framework applies to select FPIs such as sovereign wealth funds, publicly listed investment funds, and insurance-backed investment entities. These institutions typically operate under strong governance, transparency, and disclosure standards.

Under the new system, eligible investors will be able to function with a single registration, eliminating the need to obtain and manage multiple licences. Additionally, they will benefit from a longer validity period compared to the existing FPI registration structure.

The move is intended to reduce repetitive documentation and approval requirements for established, long-term institutional investors.

Implementation and Objectives

The framework was officially rolled out last month. According to SEBI, the initiative seeks to make India’s capital markets more accessible and efficient for trusted foreign investors by creating a smoother entry process.

By consolidating regulatory approvals under one licence, the regulator aims to shorten timelines, reduce administrative complexity, and enhance predictability for global institutions looking to invest in Indian markets.

Measures to Strengthen the Corporate Bond Market

Alongside the introduction of SWAGAT-FI, SEBI has also outlined steps to deepen and modernise the corporate bond market.

Key measures include:

• Mandating a shift to electronic bidding platforms for over-the-counter transactions once they exceed a prescribed threshold.
• Operationalising an Electronic Bidding Platform (EBP) for primary issuances to improve transparency and price discovery.
• Introducing a Request for Quote (RFQ) platform in the secondary market to support two-way pricing.
• Enabling Online Bond Platform Providers (OBPPs), allowing retail investors to invest in corporate bonds via digital channels.

These reforms are aimed at improving market liquidity, transparency, and broader investor participation.

Summary

SEBI has launched the SWAGAT-FI framework to provide select low-risk Foreign Portfolio Investors with a single licence and extended registration validity, simplifying market access and compliance. The regulator also highlighted ongoing reforms in the corporate bond market, including electronic bidding systems and digital access platforms, to enhance transparency and investor participation.

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