How SEBI is making it easier for foreigners to invest

**How SEBI is Making it Easier for Foreigners to Invest**
*By Dwaipayan Roy | Sep 23, 2025 | 01:18 PM*

India’s market regulator, the Securities and Exchange Board of India (SEBI), is undertaking significant steps to simplify the entry process for foreign investors. The planned changes aim to reduce documentation and scrutiny requirements, cutting down registration times dramatically from the current six months to just 30-60 days.

This initiative comes at a crucial time, as foreign investment outflows have increased this year amid trade tensions and muted corporate earnings.

### Regulatory Changes in Line with Global Standards

SEBI’s proposed reforms include standardizing documentation and easing scrutiny for investors who are already regulated in other countries. The objective is to align India’s registration process with global best practices, making it more investor-friendly.

Tuhin Kanta Pandey, chairman of SEBI, recently mentioned that the regulator is engaging with various stakeholders to streamline “know your customer” (KYC) norms across different regulatory bodies.

### Current Investment Trends

So far this year, overseas investors have net sold approximately $10 billion in Indian equities and bonds. Selling activity intensified during July and August, largely due to subdued corporate earnings and concerns around US tariffs.

In response, Indian regulatory officials have conducted extensive discussions with over 200 global asset managers from Europe, Asia, and the US in the last five months. These conversations focus on enhancing the accessibility of Indian markets for foreign investors.

### Regulatory Alignment with RBI

In tandem with SEBI’s efforts, the Reserve Bank of India (RBI) is also set to align its norms for foreign investors with the more liberal documentation requirements introduced by SEBI. This alignment particularly benefits regulated international pooled funds such as insurance and mutual funds, which are considered low-risk investments.

This development follows SEBI’s 2019 decision to ease documentary requirements for regulated public retail funds, bringing them on par with government-owned funds, further encouraging foreign capital flows.

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SEBI’s reforms signal a clear commitment to improving India’s investment climate, making it more attractive and accessible for global investors during a challenging period for foreign capital.
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