Latest news with #SWAGAT-FI
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Business Standard
2 days ago
- Business
- Business Standard
Sebi flags ₹77,800 cr as difficult-to-recover dues in FY25 annual report
The Securities and Exchange Board of India (Sebi) has identified approximately ₹77,800 crore as 'difficult to recover' dues in its annual report for the financial year 2024-25, marking a nearly 2 per cent increase from the previous year. These dues remain unrecovered despite exhaustive recovery efforts. Of the total, over ₹61,200 crore pertains to cases pending before court-appointed committees, while ₹12,300 crore relates to parallel proceedings pending in state PID courts, the National Company Law Tribunal (NCLT), the National Company Law Appellate Tribunal (NCLAT), and the Supreme Court. Sebi clarified that categorising dues as difficult to recover (DTR) does not prevent officials from pursuing recovery if circumstances change. In the report, Sebi Chairman Tuhin Kanta Pandey underscored the regulator's commitment to simplifying regulations, easing norms for foreign portfolio investors (FPIs), and enhancing investor awareness. Pandey said Sebi will undertake a comprehensive exercise to rationalise existing regulations, mindful that excessive or overlapping rules increase compliance costs. He added that Sebi aims to streamline the regulatory framework for FPIs to facilitate smoother operations and promote long-term foreign capital inflows. Recent initiatives include easier registration for FPIs investing solely in Indian government securities and a proposed single-window clearance system — 'SWAGAT-FI' — for low-risk FPIs. 'Efforts will focus on streamlining processes, removing regulatory bottlenecks, and strengthening engagement with FPIs and stakeholders. Investor education, including cyber-fraud awareness, remains a top priority,' Pandey said. Other key focus areas this year include easing compliance requirements for stockbrokers, simplifying offer documents, reviewing restrictions on asset management companies, and implementing reforms for alternative investment funds. Sebi is also reviewing the margin trading funding (MTF) framework, including eligible securities. As of August 8, the MTF book stood at ₹92,000 crore, according to NSE data. The regulator has constituted a committee to review Takeover Regulations, tasked with simplifying and strengthening the framework in line with judicial rulings and global best practices. Sebi also conducted a nationwide investor survey to shape its investor awareness strategy and has bolstered cybersecurity and technological infrastructure. Inspection activities surged significantly last year, with 312 stockbroker inspections in FY25, up from 146 in FY24. Inspections of investment advisers and research analysts also rose sharply to 207 and 149, respectively, compared to 21 and 15 the previous year. Settlement application filings jumped to 703 in FY25 from 434 in FY24. Regarding pending cases, as of March 2025, 520 matters awaited resolution at the Supreme Court, while 960 were pending at the Securities Appellate Tribunal (SAT).
Mint
3 days ago
- Business
- Mint
Sebi's proposals for easing capital flows for foreign portfolio investors
India's capital market regulator floated two proposals over the weekend for easing business and capital flows for foreign portfolio investors (FPI). The Securities and Exchange Board of India proposed the 'Single Window Automatic and Generalised Access for Trusted Foreign Investors' (SWAGAT-FI) for low-risk foreign investors, sovereign pools, and regulated public retail funds. Its other proposal aims to widen the participation of resident Indians in FPIs. This would be by allowing retail schemes at the International Financial Services Centre (IFSC) with resident Indian sponsors or managers to register as FPIs. A single window for 'trusted" foreign investors Sebi proposed SWAGAT-FI as a streamlined gateway for objectively low-risk foreign investors to access India's markets with lighter onboarding and compliance requirements, while retaining supervisory safeguards. The framework's aims are threefold: easier investment access, unified registration across routes (FPI and foreign venture capital investor, or FVCI), and reduced repetition in compliance and documentation. Sebi noted in its paper that as of 30 June, India had 11,913 registered FPIs with ₹80.83 trillion in assets under custody. The regulator estimated that investors eligible for SWAGAT already account for over 70% of total FPI assets under custody (AUC). Sebi has proposed to identify the following as SWAGAT FI—government and related investors (including central banks), and regulated public retail funds such as mutual funds and insurance companies. The low-risk characterisation rests on transparent ownership, diversified investor bases, and long-term orientation that reduces concerns around minimum public shareholding in listed companies and takeover regulations. Key relaxations, according to Sebi, include optional dual registration (FPI+FVCI) without additional documentation, enabling the same institution to invest in listed and unlisted companies, including startups. The relaxations also include extending the registration or know-your-customer (KYC) review period for such investors to 10 years from 3-5 years. The proposal also aims to permit greater participation of resident and non-resident Indians and persons with overseas citizenship of India in public retail funds by removing the 50% aggregate cap for SWAGAT-FI mutual funds. Facilitating resident Indian participation in FPIs Sebi separately proposed three measures to facilitate and clarify how resident Indian entities can participate in the FPI ecosystem, particularly via Gujarat International Finance Tec-City and International Financial Services Centre (GIFT-IFSC) structures. 1. Retail schemes in IFSC with resident Indian non-individuals as sponsors or managers would be allowed to register as FPIs, extending a permission already available to alternative investment funds (AIFs) at IFSC with resident Indian sponsors or managers. IFSC 'retail schemes' must have at least 20 investors, a 25% cap per investor, a 10% single-issuer limit, and a 'skin-in-the-game" requirement of 1% of assets under management (AUM) or $200,000 by the associate. 2. Sebi proposed aligning contribution limits for resident Indian non-individuals with the International Financial Services Centres Authority's framework by setting a uniform 10% cap of corpus or AUM for retail schemes. 3. To allow Indian mutual funds to invest in overseas mutual funds or unit trusts that have an exposure to India, Sebi proposed permitting overseas mutual funds to register as FPIS with an Indian mutual fund as a constituent. AIFs for accredited investors only Sebi also proposed allowing 'accredited investors only' AIF schemes—a distinct class in which every investor (apart from a manager/sponsor/employee carveout) holds accredited status—to receive more flexible regulatory treatment on investor-protection-centric provisions. An accredited investor is a framework defining income or net-worth criteria across individuals, companies, trusts, and partnerships. Given that accredited investors are presumed capable of assessing complex risk and conducting due diligence, Sebi proposed five main flexibilities for schemes meant only for them: Sebi said the proposals are meant to incentivise managers to launch products specifically for accredited investors while maintaining systemic safeguards such as disclosures, misconduct deterrence, conflict management, and anti-circumvention policies. All three proposals are open for stakeholder comments until 29 August.
Business Standard
3 days ago
- Business
- Business Standard
SEBI proposes Single Window Access for Trusted Foreign Investors
Securities Exchange Board of India (SEBI) has proposed introducing a single window access for low-risk foreign investors seeking to participate in the Indian securities market, a move aimed at simplifying compliance and enhancing the country's attractiveness as an investment destination. It noted that the new framework -- Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI), if implemented, would provide easier investment access to low risk foreign investors, enable a unified registration process across multiple investment routes and reduce repeated compliance and documentation for such entities, Sebi said in its consultation paper. The low-risk foreign investors identified by Sebi include government-owned funds, central banks, sovereign wealth funds, multilateral entities, highly regulated public retail funds, and appropriately regulated insurance companies, as well as pension funds. SWAGAT-FI framework aims to offer a unified, streamlined and consistent access mechanism for certain categories of foreign investors that are verified to have met specified eligibility criteria. This framework will help reduce regulatory complexity, simplify compliance, and enhance India's attractiveness as an investment destination. SEBI has proposed to grant an option to SWAGAT-FIs applying for registration/ already registered as FPIs to also register as FVCI (Foreign venture Capital Investor), without the need for any further documentation
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Business Standard
3 days ago
- Business
- Business Standard
Sebi proposes single window gateway for low risk foreign investors
Markets regulator Sebi has proposed introducing a single window access for low risk foreign investors seeking to participate in the Indian securities market, a move aimed at simplifying compliance and enhancing the country's attractiveness as an investment destination. The new framework -- Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI), if implemented, would provide easier investment access to low risk foreign investors, enable a unified registration process across multiple investment routes and reduce repeated compliance and documentation for such entities, Sebi said in its consultation paper. The low risk foreign investors identified by Sebi include government-owned funds, central banks, sovereign wealth funds, multilateral entities, highly regulated public retail funds, and appropriately regulated insurance companies, as well as pension funds. As of June 30, 2025, India had 11,913 registered FPIs, holding assets worth Rs 80.83 lakh crore and SWAGAT-FIs are estimated to contribute more than 70 per cent of total FPIs' assets under custody as on June 30, 2025. "SWAGAT-FI framework aims to offer a unified, streamlined and consistent access mechanism for certain categories of foreign investors that are verified to have met specified eligibility criteria. This framework will help reduce regulatory complexity, simplify compliance, and enhance India's attractiveness as an investment destination," Sebi said. Under the framework, the regulator has proposed to "grant an option to SWAGAT-FIs applying for registration/ already registered as FPIs to also register as FVCI (Foreign venture Capital Investor), without the need for any further documentation". Registration under both FPI and FVCI Regulations will enable SWAGAT-FIs to invest in listed equity instruments and debt securities of Indian companies as FPI, and in unlisted Indian companies engaged in specified sectors and startups as FVCI under respective regulations, it added. To enhance ease of compliance, the regulator has suggested increasing the periodicity for continuance of registration, including payment of fee and review of KYC documentation to 10 years, up from the current three-year or five-year periods. It has been proposed to permit the use of a single demat account for holding all securities acquired as FPI or FVCI or as foreign investor investing in units of investment vehicles, on an optional basis. Further, depositories will tag investments to ensure regulatory supervision. Also, it has been proposed to remove the restriction on aggregate non-resident Indian (NRI), Overseas Citizen of India (OCI) and Resident Indian individuals (RI) contribution in SWAGAT-FIs. At present, aggregate contribution from non-NRI, OCI and Resident Indian individuals (RI) in an FPI is capped at 50 per cent of the total corpus. The Securities and Exchange Board of India (Sebi) has sought public comments till August 29 on the proposals. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
News18
3 days ago
- Business
- News18
Sebi mulls single window gateway for low risk foreign investors
New Delhi, Aug 11 (PTI) Markets regulator Sebi has proposed introducing a single window access for low risk foreign investors seeking to participate in the Indian securities market, a move aimed at simplifying compliance and enhancing the country's attractiveness as an investment destination. The new framework — Single Window Automatic & Generalised Access for Trusted Foreign Investors (SWAGAT-FI), if implemented, would provide easier investment access to low risk foreign investors, enable a unified registration process across multiple investment routes and reduce repeated compliance and documentation for such entities, Sebi said in its consultation paper. The low risk foreign investors identified by Sebi include government-owned funds, central banks, sovereign wealth funds, multilateral entities, highly regulated public retail funds, and appropriately regulated insurance companies, as well as pension funds. As of June 30, 2025, India had 11,913 registered FPIs, holding assets worth Rs 80.83 lakh crore and SWAGAT-FIs are estimated to contribute more than 70 per cent of total FPIs' assets under custody as on June 30, 2025. 'SWAGAT-FI framework aims to offer a unified, streamlined and consistent access mechanism for certain categories of foreign investors that are verified to have met specified eligibility criteria. This framework will help reduce regulatory complexity, simplify compliance, and enhance India's attractiveness as an investment destination," Sebi said. Under the framework, the regulator has proposed to 'grant an option to SWAGAT-FIs applying for registration/ already registered as FPIs to also register as FVCI (Foreign venture Capital Investor), without the need for any further documentation". Registration under both FPI and FVCI Regulations will enable SWAGAT-FIs to invest in listed equity instruments and debt securities of Indian companies as FPI, and in unlisted Indian companies engaged in specified sectors and startups as FVCI under respective regulations, it added. To enhance ease of compliance, the regulator has suggested increasing the periodicity for continuance of registration, including payment of fee and review of KYC documentation to 10 years, up from the current three-year or five-year periods. It has been proposed to permit the use of a single demat account for holding all securities acquired as FPI or FVCI or as foreign investor investing in units of investment vehicles, on an optional basis. Further, depositories will tag investments to ensure regulatory supervision. Also, it has been proposed to remove the restriction on aggregate non-resident Indian (NRI), Overseas Citizen of India (OCI) and Resident Indian individuals (RI) contribution in SWAGAT-FIs. At present, aggregate contribution from non-NRI, OCI and Resident Indian individuals (RI) in an FPI is capped at 50 per cent of the total corpus. The Securities and Exchange Board of India (Sebi) has sought public comments till August 29 on the proposals. PTI SP SP SHW view comments First Published: August 11, 2025, 14:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
