As part of the changes, the RBI will match the more liberal documentation needs of SEBI for regulated overseas funds, such as insurance and investment funds, which are considered a low risk, for example sources | Photocredit: Reuters/Francis Mascarenhas
The Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) are in advanced discussions to facilitate access processes for new overseas investors, said four sources, at a time when foreign stream remains weak in the economy.
The changes would include less and standardized documentation and less control on investors who have already been regulated in other countries. That will reduce the time that is needed to register in India to 30-60 days from almost six months, making them in accordance with the worldwide standards, said the sources that have direct knowledge of the matter. They refused to be called because discussions are private.
E -Mailquerys sent to Sebi and the RBI were not answered.
“To facilitate the convenience of investment by foreign investors in India, we are working on various stakeholders to streamline the knowledge of your customer standards in the regulators,” said Tuhin Kanta Pandey, chairman of Sebi, without working out.
American rates remain impact
The proposed changes come at a time when India is confronted with hard trade rates from the US, leading to uncertainty for the economy and its markets.
Overseas investors have so far sold a net $ 10 billion in Indian shares and bonds in 2025, with the sale of intensification in July and August due to muted business income and American rates.
Over the past five months, top -regulating officials have met more than 200 global asset managers in Europe, Asia and the US to ask for feedback about ways to make Indian markets more accessible, according to two of the four sources.
Separately, a delegation from investors from six countries met officials from the RBI, Sebi, fairs and financial ministry in India earlier this month, the two added.
As part of the changes, the Central Bank will correspond to Sebi’s more liberal documentation needs for regulated overseas funded funds, such as insurance and investment funds, which are considered low risk, according to the sources.
“In 2019, Sebi had facilitated the documentary requirements for regulated public retail funds that they brought on the same basis with government funds. A similar relaxation has not yet been done by RBI,” said one of the sources.
RBI will also coordinate standards for foreign investors to open bank accounts with the registration requirements of Sebi, a second source said.
RBI currently requires that banks follow a risk-based assessment, including the search for a statement about the source of funds and proof of identity, in addition to other requirements.
Sebi recently also beat a website for foreign investors and investigates whether it could enable them to submit registration documents directly, one of the four sources said.
“Both Sebi and RBI have been very responsive and proactive this year to find ways to make foreign investors easy to invest in India,” said Eugenie Shen, director of Asia Securities Industry & Financial Markets Association, a lobbyist for offshore investors.
Published on September 23, 2025
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