The Securities and Exchange Board of India (Sebi) on Monday exempted foreign portfolio investors (FPIs) investing exclusively in government securities from furnishing investor group details. 

In a circular issued on Monday, the market regulator amended its Master Circular for FPIs, Designated Depository Participants (DDPs), and Eligible Foreign Investors, dated May 30, 2024.

The move extends a relaxation Sebi first carved out in September 2025 for FPIs investing only in government bonds under the fully accessible route (FAR).

The regulator said the latest amendment follows the Reserve Bank of India’s (RBI’s) June 5, 2026 circular, which withdrew the requirement for FPIs investing in government securities through the general route to comply with the prescribed concentration limit. With the concentration limit no longer applicable, Sebi said the requirement for identifying investor groups for such FPIs had become redundant and was accordingly scrapped.

The revised provision now reads: “FPIs investing only in government securities shall not be required to furnish investor group details,” widening the earlier exemption that was restricted to the fully accessible route alone to cover all FPIs investing purely in government debt, irrespective of route.

Sebi has directed depositories, custodians and DDPs to make the necessary system changes to implement the revised norm, which comes into effect immediately.

Investor group classification  or disclosure of beneficial owners has been used by Sebi to monitor ownership or control among FPIs and enforce sectoral or single-entity investment ceilings. 

Its removal for government securities-only investors is expected to ease compliance and onboarding for sovereign wealth funds, central banks and other large debt-focused foreign investors accessing the Indian bond market.