SEBI extends FPI KYC review to eight years from December 1

SEBI has eased Know Your Customer (KYC) norms for foreign portfolio investors (FPIs), extending the periodic review period to eight years for eligible Category I and Category II investors, effective 1 December 2026. Under the revised framework, Category I FPIs registered in non-high-risk jurisdictions or under Regulation 5(a)(i) in high-risk jurisdictions will undergo KYC reviews once every eight years. Other Category I investors from high-risk jurisdictions will be reviewed every two years.

For Category II, regulated FPIs from non-high-risk jurisdictions also get an eight-year cycle, while other Category II investors face two-year checks. SEBI has removed the requirement for investors to declare changes in previously submitted information when continuing registration, they now need only pay the applicable continuation fee at least 15 days before expiry. The existing 10-year cycle for SWAGAT-FI investors and rules for GS-FPIs remain unchanged.