SEBI Chief Pushes FPI Easing: Tenure, KYC, IPO Proposals
Why in the news
Since March 2025, SEBI Chairman Tuhin Kanta Pandey has met foreign investors and PE funds to attract inflows that help the balance of payments and the currency. Choppy equities, volatile bonds and US tariff pressure on the current account deficit are the backdrop.
Proposals under consideration
| Area | Investor ask | Present rule |
|---|---|---|
| FPI licence | 3 to 5 years | 3 years, renewable (SEBI FPI Regulations, 2019) |
| KYC | Simpler onboarding | PAN, beneficial ownership, FATF compliance (Master Circular, April 2023) |
| Disclosure | Spare large private funds granular detail; review the above-10% natural person rule | All beneficial owners disclosed under PMLA rules |
| Primary market | Quicker IPO approval; NRI money for low-risk FPIs; domestic sponsors in GIFT City | ICDR Regulations, 2018; NRI pooling barred except regulated routes |
| Mega IPOs | Longer time to reach MPS | 25% within 3 years of listing |
Exam angle
- MPS: 25%.
- Terms: beneficial owner, PMLA, ICDR, GIFT City.