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News Topical, Digital Desk : Indian market regulator SEBI and banking regulator Reserve Bank of India (RBI) are preparing to ease regulations for foreign investors. The proposed changes will now require only 30–60 days for new foreign investors to register in India, instead of six months. The aim is to speed up and simplify the investment process, in line with global standards. This move is significant at a time when foreign flows remain weak and uncertainty has increased due to US tariffs.
What will change: Currently, it takes approximately six months to register a new foreign investor in India. The proposed reforms will reduce this time to only 30–60 days. Documentation will be standardized and reduced, especially for investors already regulated in their home countries. This will bring India's registration process in line with global standards.
Investor Opinion and Situation: Foreign investors have net sold $10 billion from the Indian equity and bond markets so far in 2025. This selling intensified in July–August due to weaker-than-expected corporate results and the shock of additional tariffs from the US. However, Indian officials have met with more than 200 global asset managers in Europe, Asia, and the Americas over the past five months. Additionally, a delegation of investors from six countries recently met with officials from SEBI, RBI, and the Ministry of Finance in India.
RBI and SEBI coordination: In 2019, SEBI simplified documentary norms for regulated public funds (such as mutual funds and insurance funds). Now, the RBI is preparing to align these with its bank account opening regulations. This means that foreign investors will find it easier to open bank accounts, which previously required declarations such as the source of funds and identity proof.
SEBI's new initiative: SEBI recently launched a website for foreign investors to make the registration process more transparent. In the future, investors will be able to submit documents directly online.
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