SEBI Proposal: Domestic investors may get access to FPIs in IFSC

The Securities and Exchange Board of India (SEBI) has proposed allowing resident Indian non-individual investors to act as sponsors or managers of Foreign Portfolio Investors (FPIs) registered in International Financial Services Centres (IFSC) such as GIFT City.

Under the proposal, such investors would be permitted to contribute up to 10% of the total fund corpus, in line with existing IFSC regulations. SEBI has also suggested allowing Indian mutual funds to participate in FPIs.

According to SEBI, the move aims to increase domestic investor participation in foreign portfolio investments and strengthen the global integration of India’s financial markets. It would also help align SEBI’s rules with those of the IFSC.

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The market regulator has invited comments and feedback on the proposal until 29 August 2025.