Sebi’s Swagat rules for foreign investors may have a flip side

The Securities and Exchange Board of India (Sebi) has unveiled its most sweeping overhaul of foreign investor rules yet, offering 10-year registrations and a single gateway to cut red tape.

- NehaJoshi

Cleared by the Sebi board on 12 September, the new Single Window Automatic & Generalised Access for Trusted Foreign Investors (Swagat-FI) framework aims to unify investment routes, cut onboarding times, and give investors greater regulatory certainty to draw longterm global capital into India.

"No direct tax changes have been announced," said Alay Razvi, managing partner at Accord Juris. However, the new system's design is expected to reduce friction between investors and tax authorities.

A key feature is the option to use a single demat account for all securities, whether acquired as an FPI or a foreign venture capital investor (FVCI).

New rules create transparency in tracking flows, but may heighten regulatory scrutiny, say experts