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SEBI FPI Rules for Government-Bond Investors From Feb 2026

11 September 20251 min read
BANKING & FINANCESEBI FPI Rules forGovernment-BondInvestors FromFeb 202611 September 2025safalsetu.com

Why in the news

SEBI said eased rules for foreign investors holding only Indian government bonds start on 8 February 2026; its board cleared them in June 2025.

Key facts

  • Applies to FPIs using the fully accessible route for government securities alone.
  • No need to reveal investor group details (regular equity or debt FPIs must); some reporting is also waived.

About FAR and FPIs

  • FAR: brought in by RBI in April 2020; lets non-resident investors buy specified government securities without limits, to attract global capital.
  • FPIs: foreign entities or individuals investing in Indian equities, corporate debt or government bonds, adding capital and liquidity.

Exam angle

  • Rule-maker: SEBI; route creator: RBI.
  • Effective date: 8 February 2026.

Test yourself

1. SEBI's eased rules for government-bond-only FPIs come into effect from:

The notes give 8 February 2026.

2. Which body introduced the Fully Accessible Route for government securities?

RBI introduced FAR in April 2020.

3. What relief do FPIs investing only in government bonds get under the revised SEBI rules?

They are exempt from investor group disclosure and some reporting.