SEBI has rationalised the periodicity of Know Your Customer (KYC) reviews for Foreign Portfolio Investors (FPIs), extending the review interval to eight years for certain categories. The regulator has also removed the requirement to report changes in previously submitted information at the time of registration continuation.
If you invest in Indian securities through the Foreign Portfolio Investor (FPI) route, you may benefit from reduced KYC compliance requirements. The Securities and Exchange Board of India (SEBI) has revised the KYC review frequency for FPIs to reduce their compliance burden and make it easier to continue their registration.
Under a circular dated October 30, 2026, SEBI has extended the KYC review interval to eight years for certain FPI categories, while others will undergo reviews every two years.
What has changed in FPI KYC requirements?
SEBI has revised the KYC review intervals based on the FPI’s risk classification, category and regulatory status.
FPI classification | Revised KYC review frequency |
High-risk Category I registered under Regulation 5(a)(i) | Every 8 years |
Other high-risk Category I FPIs | Every 2 years |
High-risk Category II FPIs | Every 2 years |
Non-high-risk Category I FPIs | Every 8 years |
Non-high-risk Category II – Regulated entities | Every 8 years |
Non-high-risk Category II – Others | Every 2 years |
Earlier, KYC reviews were required annually or once every three years, depending on the jurisdiction, FPI category and regulatory status.
The existing KYC review requirements for Government Securities-only FPIs (GS-FPIs) and SWAGAT-FI FPIs remain unchanged.
Fewer formalities when continuing your FPI registration
SEBI has also removed the requirement for FPIs, other than GS-FPIs, to report changes in previously submitted information or provide a no-change declaration when continuing their registration.
Earlier, you had to inform your Designated Depository Participant (DDP) about changes in your submitted information or confirm that no changes had occurred at the time of registration continuation. Under the revised rules, this separate requirement has been removed.
However, you must still pay the applicable registration continuation fees to your DDP at least 15 days before your existing registration expires.
What do the revised rules mean for you?
If you invest in Indian securities through the FPI route, these changes could mean fewer KYC reviews and fewer recurring compliance formalities.
The longer review intervals may also reduce the administrative effort involved in maintaining your FPI registration, particularly if your category qualifies for an eight-year review cycle.
For NRIs, the change is relevant if you invest through the FPI route. However, it does not automatically apply to all NRI investments, as different investment routes have their own regulatory requirements.
Overall, SEBI’s decision aims to simplify compliance for foreign investors while retaining risk-based KYC requirements.
