SEBI Overhauls FPI Rules With Rupee Fees and SWAGAT-FI

The Securities and Exchange Board of India (SEBI) has made significant changes to the Foreign Portfolio Investor (FPI) framework in 2026, switching registration fees from US dollars to rupees and launching a fast-track onboarding system called SWAGAT-FI.

Foreign Portfolio Investors are overseas institutions and funds that invest in Indian listed securities; they are a major driver of market liquidity and foreign-exchange flows.

Key Highlights

• FPI registration fees switched from US dollars to Indian rupees.
• Standard registration fee set at ₹90,000, effective December 2026.
• SWAGAT-FI offers single-window, fast-track onboarding for trusted funds.
• A relaxed route for government-securities investors (GS-FPIs) launched in February 2026.
• Strict beneficial-owner disclosure for concentrated holdings remains.

Background

India's markets regulator has faced a dual challenge: attracting foreign capital while guarding against opaque offshore structures. After concerns about hidden ultimate beneficial owners (UBOs), SEBI introduced rigorous disclosure norms in late 2023. Its focus through 2025 and 2026 shifted toward operational ease without loosening oversight.

What Changed

In a July 2026 notification, SEBI redenominated registration fees from dollars to rupees, fixing the standard fee at ₹90,000. The move insulates fees from currency swings and supports the wider push to internationalise the rupee.

Earlier, in January 2026, SEBI operationalised SWAGAT-FI — Single Window Automatic and Generalised Access for Trusted Foreign Investors — cutting onboarding for sovereign or broadly diversified funds from weeks to days. A dedicated GS-FPI route followed, easing certain disclosures to boost foreign participation in sovereign debt.

The 2026 changes at a glance

SEBI FPI framework: 2026 updates

Change	Detail
Fee currency	Switched from USD to INR
Standard registration fee	₹90,000 (effective December 2026)
SWAGAT-FI	Fast-track single-window onboarding
GS-FPI route	Relaxed rules for government-securities investors
UBO disclosure	Retained for concentrated holdings

Why It Matters

FPIs strongly influence market liquidity and foreign-exchange reserves. The 2026 updates reflect a maturing approach: raising walls against illicit round-tripping through strict UBO rules, while easing entry for legitimate institutional capital — a balance that shapes the same investor mood driving India's venture funding trends.

“The transition to rupee fees and SWAGAT-FI signals confidence in the domestic currency and a commitment to reducing friction for genuine global investors,” said the head of custody services at a multinational bank.

Frequently Asked Questions

What is the new FPI fee structure?

Fees moved from dollars to rupees, with the standard registration fee set at ₹90,000, effective 30 December 2026.

What is SWAGAT-FI?

Single Window Automatic and Generalised Access for Trusted Foreign Investors — a fast-track onboarding route for eligible, transparent funds.

Must FPIs still disclose beneficial owners?

Yes. Funds with highly concentrated holdings must give granular disclosures identifying natural persons.

What is a GS-FPI?

A foreign investor focused only on Indian government securities, with relaxed eligibility and disclosure rules from February 2026.

Why switch fees to rupees?

To insulate fees from currency volatility and support internationalisation of the rupee.

Sources

• Securities and Exchange Board of India — FPI regulations and notifications
• SEBI circulars on SWAGAT-FI and GS-FPI