The Securities and Exchange Board of India (Sebi) and the Reserve Bank of India (RBI) are in advanced discussions to ease entry processes for new overseas investors, at a time when foreign flows into the economy remain weak, according to a Reuters report on Tuesday. The changes would include fewer and standardised documentation and less scrutiny on investors that are already regulated in other countries. That will reduce the time taken to register in India to 30-60 days from nearly six months, bringing them in line with global standards, said the sources, who have direct knowledge of the matter. They declined to be named as discussions are private. “To facilitate the ease of investments by foreign investors in India we are engaging with various stakeholders to streamline the know your customer norms across the regulators,” Tuhin Kanta Pandey, India markets regulator chairman, said last week, without elaborating. The proposed changes come at a time when India faces harsh trade tariffs from the U.S., leading to uncertainty for the economy and its markets. Overseas investors have sold a net $10 billion in Indian equities and bonds so far in 2025, with selling intensifying in July and August because of muted corporate earnings and U.S. tariff concerns.
The report said, top Indian regulatory officials have met over 200 global asset managers across Europe, Asia and the U.S. in the last five months to seek feedback on ways to make Indian markets more accessible, two of the four sources said. Separately, a delegation of investors from six countries met officials at the RBI, SEBI, exchanges and finance ministry in India earlier this month, the two added. As part of the changes, the central bank will match SEBI’s more liberal documentation needs for regulated overseas pooled funds, such as insurance and mutual funds, which are considered to be low-risk, the sources said. “In 2019, SEBI had eased documentary requirements for regulated public retail funds brought them at par with government-owned funds. A similar relaxation has not been done by RBI yet,” said one of the sources. RBI will also align norms for foreign investors to open bank accounts with SEBI’s registration requirements, a second source said. At present, RBI requires banks to follow a risk-based assessment which includes seeking a declaration on the source of funds and proof of identity, among other requirements. SEBI has also recently launched a website for foreign investors, and is exploring whether it could allow them to submit registration documents directly, said one of the four sources