SEBI Extends FPI KYC Review Cycle to 8 Years for Some Investors
SEBI's circular of 30 October 2026 sets 2-year and 8-year KYC reviews for FPIs from 1 December 2026.
Key Takeaways
- SEBI issued the circular on KYC review periodicity for FPIs on 30 October 2026.
- The new rules come into force on 1 December 2026.
- Some FPIs will be reviewed every 8 years and others every 2 years, while GS-FPIs and SWAGAT-FI FPIs keep their existing cycles.
- FPIs earlier faced KYC reviews annually or every three years.
- FPIs no longer report changes or file a no-change declaration when continuing registration.
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The Securities and Exchange Board of India (SEBI) has eased the FPI KYC review rules for foreign portfolio investors (FPIs). In a circular dated 30 October 2026, the regulator lengthened the gap between KYC reviews, and some FPIs will now be reviewed only once every eight years. The new rules come into force on 1 December 2026.
Until now, the Master Circular for FPIs provided for a KYC review annually or every three years, depending on the jurisdiction, category and regulated status of the FPI. SEBI also dropped the requirement that FPIs report changes in their information, or file a no-change declaration, when they continue their registration.
SEBI's FPI KYC review change at a glance
| Detail | Value |
|---|---|
| Issued by | Securities and Exchange Board of India (SEBI) |
| Circular title | Rationalisation of periodicity of KYC review for FPIs |
| Circular date | 30 October 2026 |
| Comes into force | 1 December 2026 |
| Earlier KYC review cycle | Annually or every three years, depending on jurisdiction, category and regulated status |
| Longest new cycle | Every 8 years |
| Shortest new cycle | Every 2 years |
| FPIs investing only in government securities (GS-FPIs) | No change; reviews follow their bank accounts' cycle set by the RBI |
| SWAGAT-FI FPIs | No change; 10 years |
Which FPIs get an 8-year KYC review cycle
The new review cycle depends on the FPI's category and the risk level of its jurisdiction. The circular sets these periods:
| Jurisdiction | FPI Category I | FPI Category II |
|---|---|---|
| High risk | Every 8 years for those registered under Regulation 5(a)(i); every 2 years for others | Every 2 years |
| Non-high risk | Every 8 years | Every 8 years for regulated entities; every 2 years for others |
In other words, the 8-year cycle applies to Category I FPIs in non-high-risk jurisdictions, to Category I FPIs in high-risk jurisdictions that are registered under Regulation 5(a)(i), and to regulated Category II FPIs in non-high-risk jurisdictions. Every other FPI covered by the table is reviewed every 2 years.
What else changes for FPIs continuing their registration
FPIs other than GS-FPIs earlier had to intimate changes in previously furnished information, or submit a no-change declaration, when continuing their registration. SEBI has dispensed with this. To continue for the next block of three years (10 years for SWAGAT-FI FPIs), an FPI pays the fees to its designated depository participant (DDP). The circular says the fees must be paid at least 15 days before the current registration validity ends, to facilitate a smooth continuance process.
Depositories, custodians and DDPs must make the necessary changes in their systems and processes and bring them to the notice of the FPIs concerned.
How the FPI KYC rules were rationalised
SEBI issued the circular under Section 11(1) of the SEBI Act, 1992 read with Regulation 44 of the SEBI (Foreign Portfolio Investors) Regulations, 2019. It modifies the Master Circular for FPIs, DDPs and Eligible Foreign Investors dated 30 May 2024.
| When | What happened |
|---|---|
| 30 October 2026 | SEBI issues the circular on the periodicity of KYC review for FPIs |
| 1 December 2026 | The circular comes into force |
Why SEBI says it changed the FPI KYC cycle
SEBI said it took the decision to rationalise these requirements, reduce the compliance burden and promote ease of doing business.
Where FPI KYC reviews stand from 1 December
From 1 December 2026, KYC reviews for FPIs will run on cycles of 2 or 8 years, replacing the earlier annual or three-year cycles. GS-FPIs and SWAGAT-FI FPIs keep their existing cycles, and FPIs no longer file a separate change declaration when they continue their registration.
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Frequently Asked Questions
What is the new SEBI rule on FPI KYC reviews?
When do the new FPI KYC rules come into force?
How long is the new KYC review cycle for FPIs?
How often were FPIs reviewed for KYC before the change?
Which FPIs get an 8-year KYC review cycle?
How often are Category II FPIs in high-risk jurisdictions reviewed under the SEBI circular?
Do FPIs that invest only in government securities get the new cycle?
How long is the KYC review period for SWAGAT-FI FPIs?
What happens to the change-intimation requirement for FPIs?
How early must FPIs pay the fee to continue their registration?
Who must make changes to implement the SEBI circular on FPI KYC?
Why did SEBI change the FPI KYC review cycle?
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