Sebi proposes single-window gateway for trusted foreign investors

Current Context: On 08 August 2025, SEBI proposed the SWAGAT-FI framework (Single Window Access for Global Access to Trusted Foreign Investors) to streamline entry for low-risk global entities.

• Targeted investors include sovereign wealth funds, central banks, pension funds, and regulated financial institutions, which together hold over 70% of FPI assets in India.
• The framework allows a single demat account, simplifies registration for FPIs and FVCIs, and extends KYC review cycles to 10 years.
• It aims to reduce compliance burden and improve ease of doing business.
• SWAGAT-FI aligns with India’s goal to attract long-term, stable foreign capital.
• SEBI has invited public comments on the proposal until 29 August 2025.

Question:

Q.1 According to the Securities and Exchange Board of India (SEBI), which category of investors will benefit most from the SWAGAT-FI framework?
a) Hedge funds and venture capital firms
b) Sovereign wealth funds, central banks, pension funds, regulated financial institutions
c) Retail foreign investors and day traders
d) Start-up incubators and accelerators

Answer: b) Targeted investors include sovereign wealth funds, central banks, pension funds, and regulated financial institutions, which together hold over 70% of FPI assets in India.