The Securities and Exchange Board of India (SEBI) on December 01, 2025, issued the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2025 to further amend the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019.
The following amendments have been stated:
• In regulation 4, in clause (c), after sub-clause (v),
o after the first proviso and before the second proviso, the following new proviso shall be inserted, namely, –
“Provided further that a mutual fund registered under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 may also be constituent of the applicant, subject to such conditions as may be specified by the Board from time to time:”
• in the third proviso,
i. in clause (i), after the words “the applicant is an Alternative Investment Fund” and before the words “setup in the International Financial Services Centres”, the words “or a Retail Scheme” shall be inserted.
ii. in clause (ii), the words “Sponsor or Manager” shall be substituted with the words “fund management entity or its associate”.
• in clause (iii),
a. in sub-clause (a), the words and symbols “2.5% of the corpus of the applicant or US $ 7,50,000 (whichever is lower), in case the applicant is a Category I or Category II Alternative Investment Fund; or” shall be substituted with the words and symbols “10% of the corpus of the applicant in case the applicant is an Alternative Investment Fund; or”.
b. in sub-clause (b), the words and symbols “5% of the corpus of the applicant or US $ 1.5 million (whichever is lower), in case the applicant is a Category III Alternative Investment Fund;” shall be substituted with the words and symbols “10% of the Assets under Management in case the applicant is a Retail scheme;”.
c. after sub-clause (b), the following explanation shall be inserted, namely, –
“Explanation – ‘fund management entity’ and ‘associate’ shall have the meaning as provided under International Financial Services Centres Authority (Fund Management) Regulations, 2025 as amended from time to time.”
iii. after the third proviso and before the fourth proviso, the following proviso shall be inserted, namely, - “Provided further that the provisions of sub-clause (ii) of clause (c) shall not be applicable to a SWAGAT-FI.”
• In regulation 7, in sub-regulation (6), after the second proviso, the following proviso shall be inserted, namely, -
“Provided further that a SWAGAT-FI shall pay the registration fees, as provided in Part A of the Second Schedule for every block of ten years, before the beginning of such block.”
They shall come into force on the one hundred eightieth day from the date of publication of these regulations in the Official Gazette.
Provided that clauses (i) and (ii) of sub-regulation II of regulation 3 shall come into force on the date of their publication in the Official Gazette.
[Notification No.SEBI/LAD-NRO/GN/2025/279]
