Finance Desk – The Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are working together to make it easier for foreign investors to enter Indian markets, according to a Reuters report.
What Will Change?
Simpler paperwork: Documentation will be standardised and reduced, especially for investors already regulated in their home countries.
Faster approvals: Registration time will drop to 1–2 months, compared to the current six months.
Aligned rules: RBI will relax its stricter requirements and match SEBI’s easier process for low-risk funds like insurance and mutual funds.
Why Now?
India is facing weaker foreign investment flows. In 2025 so far, overseas investors have sold $10 billion worth of Indian equities and bonds, with heavy selling in July and August due to US tariff worries and weak corporate earnings.
By cutting red tape, regulators hope to make Indian markets more attractive and aligned with global standards.
Investor Outreach
Over the past five months, top Indian regulators have met with 200+ global asset managers across Europe, Asia, and the US to get feedback on improving access to Indian markets.
Easier rules could boost foreign investments at a time when India faces global trade uncertainties. However, regulators will still monitor risks through their Know-Your-Customer (KYC) norms and oversight.
