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Sebi Eyes Same-Day Settlement Netting for FPIs

20 November 20251 min read
BANKING & FINANCESebi EyesSame-DaySettlementNetting for FPIs20 November 2025safalsetu.com

Why in the news

Sebi weighed easing settlement for foreign investors, alongside wider market reforms.

Key facts

  • Now: delivery for every trade, adding cost and complexity.
  • Proposed: netting of same-day trades, settling only the difference.
  • SWAGAT-FI may allow other FEMA-approved routes; talks continue with RBI and the Finance Ministry.
  • Also: review of short selling and securities lending, a closing auction session, corporate bond and retail push, institutional entry into commodities.

Exam angle

  • FPI = Foreign Portfolio Investor.

Test yourself

1. Sebi's proposal for foreign portfolio investors would allow settlement of what on a net basis?

Sebi studied netting settlements for trades executed on the same day.

2. Which proposed category offers a fast-track route for trusted foreign institutions?

SWAGAT-FI is the fast-track category.

3. Digital FPI registration is expected to cut registration timelines from what to what?

The paperless system should reduce timelines from months to days.