SEBI Proposes Reforms to Increase Resident Indian Participation in Foreign Portfolio Investments

On August 8, 2025, SEBI issued a Consultation Paper proposing reforms to enhance resident Indian participation in Foreign Portfolio Investments (FPIs).

The proposals include allowing retail schemes in International Financial Services Centres (IFSCs) with resident Indian non-individual sponsors or managers to register as FPIs, subject to IFSCA norms minimum of 20 investors, no single investor holding over 25%, and a 10% investment cap per company.

Contribution limits for resident Indian non-individuals would rise to 10% of the corpus or assets under management. Indian mutual funds could become constituents of overseas mutual funds or UTI registering as FPIs. 

Public comments are open until August 29, 2025.