Mumbai, October 31, 2026: The Securities and Exchange Board of India (SEBI) has revised the periodicity of Know Your Customer (KYC) reviews for foreign portfolio investors (FPIs), easing compliance requirements for eligible investor categories.
The regulator’s circular, dated October 30, 2026, rationalises the earlier review framework, under which periodic checks were generally required annually or every three years depending on the investor’s category, jurisdiction and regulatory status.
What changes?
Under the revised framework, eligible non-high-risk Category I FPIs and certain regulated Category II entities may have an eight-year review cycle. Other categories, including some high-risk investors and non-regulated entities, remain subject to shorter two-year review periods. The applicable timeline depends on the exact category and status of the FPI.
The changes are scheduled to take effect from December 1, 2026. Depositories, custodians and designated depository participants are required to update their systems and processes.
What it means for investors
The move is intended to reduce repetitive compliance work for eligible foreign investors while retaining differentiated checks based on risk. It does not remove the obligation to report changes in information or meet other applicable regulatory requirements.
FPIs should check the circular and confirm their classification with their custodian or designated depository participant before relying on the revised cycle.
Sources: SEBI circular listing; Circular summary.
