Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) Framework

Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) Framework

The Securities and Exchange Board of India (SEBI) is ushering in a new era of foreign investment management with the introduction of the SWAGAT-FI Framework i.e. Single Window Automatic and Generalised Access for Trusted Foreign Investors. This approach aims to streamline access for select, objectively identified foreign funds considered low-risk, thereby enhancing India’s reputation as an attractive destination for global capital.

Who Would Qualify?

Following categories of foreign investors:

Government and Government related investor(s) such as central banks, sovereign wealth funds (SWFs), international or multilateral organizations or agencies including entities controlled or at least 75% directly or indirectly owned by such Government and Government related investor(s)

Appropriately regulated Public Retail Funds (PRFs) as under, with demonstrably diversified investor and investment base with independent fund managers, as mandated by their home regulator which includes (a) appropriately regulated Mutual funds and Unit Trusts that are open for subscription by retail investors, that verifiably operate as a blind pool with diversified investors and investments under an independent Investment Manager; (b) appropriately regulated Insurance Companies investing their own funds, without segregated portfolios; and (c) appropriately regulated Pension Funds

Key Features of the SWAGAT-FI Framework

Unified, Single Window Registration

Eligible investors access multiple investment routes such as Foreign Portfolio Investor (FPI) and Foreign Venture Capital Investor (FVCI), using a singular, streamlined registration process. This simplifies onboarding and eliminates repeated paperwork, making the Indian market more accessible and efficient for trusted institutions.

Seamless Dual Investment Route

SWAGAT-FI permits simultaneous registration as FPI and FVCI, with no need for separate documentation. This empowers qualified investors to participate in both listed markets and unlisted segments, including start-ups and emerging companies, under one regulatory umbrella.

Extended Validity and Compliance Review

For SWAGAT-FI entities, registration and mandatory compliance checks including Know Your Customer (KYC) reviews are now required only every ten years, compared to the previous three or five-year cycles. This reduces the administrative burden and supports longer-term commitment.

Flexible Securities Management with Single Demat Account

Investors can choose to keep all their investments made through different routes such as FPI and FVCI—in one single demat account instead of opening separate accounts for each. This makes managing their investments easier. At the same time, advanced technology will be used to label and track each investment properly, ensuring regulators can monitor everything clearly and securely.

Removal of Investment Caps for NRI/OCI/RI Participation

SEBI proposes to eliminate the 50% aggregate cap on investments from Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Resident Indians for SWAGAT-FI funds. his change will allow more investment from these groups, while still ensuring risks are managed effectively through the diversified and independently managed structure of these funds.

Freedom in Investment Allocation

SWAGAT-FI gives investors more flexibility to distribute capital between listed and unlisted securities. Rigid allocation percentages such as the earlier FVCI rule requiring 66.67% in unlisted equity shall not apply to SWAGAT-FI entities.

Alignment with International Regulatory Practices

The new framework reflects global best practices, focusing regulatory oversight proportionally to an entity’s risk and governance standards. By modernizing entry requirements and compliance for trusted investors, SWAGAT-FI supports India’s reputation as a competitive and investor-friendly destination.

Implementation Timeline

SEBI aims to implement the SWAGAT-FI features across systems and processes within six months of regulatory notification, providing a clear timeline for market and operational adaptation.