In short: On 30 October 2026, SEBI announced that Foreign Portfolio Investors (FPIs) will face KYC reviews less often. The annual review becomes a two-yearly one, and the three-yearly review becomes an eight-yearly one. The new framework takes effect from 1 December 2026.
What has SEBI announced?
In Press Release No. 67/2026, issued from Mumbai on 30 October 2026, the Securities and Exchange Board of India (SEBI) said it is rationalising how often FPIs must go through a periodic KYC review. SEBI describes this as part of its continuing effort to simplify compliance for FPIs. It regulates the securities market under the Securities and Exchange Board of India Act, 1992.
Until now, an FPI has had to undergo KYC review either every year or once every three years, depending on its category and other criteria. The revised framework lengthens both intervals.
The changes at a glance
| Category | Current KYC review | From 1 December 2026 |
|---|---|---|
| FPIs reviewed annually | Every year | Every two years |
| FPIs reviewed every three years | Every three years | Every eight years |
| SWAGAT-FI FPIs | 10 years | No change (10 years) |
Eight years is the longest interval for the categories whose timelines are being changed. SWAGAT-FI FPIs already have a ten-year cycle, and that stays as it is.
Other points in the announcement
- Existing GS-FPI relaxations stay: SEBI has said the relaxations already available to GS-FPIs will remain unchanged.
- One confirmation is dropped: FPIs have been required to give a separate confirmation about any change in previously submitted information when their registration continues. SEBI will discontinue this requirement.
- The stated purpose: SEBI says the aim is to combine multiple requirements of a similar nature, reduce repetitive compliance and ease the burden on FPIs, which in turn supports ease of doing business.
What does this mean legally?
The change is made through a SEBI circular, not a new statute. SEBI says the circular's provisions come into force on 1 December 2026. From that date, the longer review intervals apply to the categories described above. The press release does not describe any transition steps or any change to the rules for GS-FPIs or SWAGAT-FI FPIs.
Less frequent reviews do not remove the KYC framework. FPIs remain subject to periodic review, only at longer intervals. The press release does not say anything further about the content of the review.
Who is affected?
- FPIs that have so far been reviewed every year or every three years.
- The intermediaries and professionals who handle compliance for such investors. The press release does not name them, but they are likely to see fewer repeat filings.
What should readers do?
- Read the circular itself. SEBI says it can be found on www.sebi.gov.in under "Legal → Circulars".
- Check which category your FPI falls into, because the new interval depends on it.
- Update your compliance calendar ahead of 1 December 2026. Do not assume that any date falling before then is affected, because the press release is silent on that point.
- If you are unsure how the circular applies to a particular FPI, ask a qualified securities-law adviser.
Frequently asked questions
When does the new KYC review cycle start?
SEBI says the provisions of the circular come into effect from 1 December 2026.
Do SWAGAT-FI FPIs get a longer cycle too?
No. Their KYC review period stays unchanged at 10 years.
Is the separate confirmation of changed information still needed?
No. SEBI says the separate confirmation about changes in previously submitted information, at the time registration continues, will be discontinued.