SEBI Launches Consultation to Revise FPI/DDP Master Circular — Stakeholders Invited to Weigh In

Updated: December 05, 2025 22:08

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SEBI has issued a consultation paper inviting feedback on updating its 2024 Master Circular for Foreign Portfolio Investors and Designated Depository Participants. The exercise aims to revisit and refine foreign-investment regulations, impacting FPIs, DDPs and eligible investors. Outcomes may lead to revised compliance norms and altered investment procedures.

India Market Brief

The Securities and Exchange Board of India (SEBI) has issued a “Consultation Paper on Review of Master Circular for Foreign Portfolio Investors (FPIs) and Designated Depository Participants (DDPs)”, reopening the regulatory framework for public feedback. This could signal soon-to-come updates to rules governing foreign investments in Indian markets. The consultation aims to revisit and possibly refine regulations encapsulated in the existing Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors issued on 30 May 2024.

What’s New — Key Highlights

Rationale for Review: The 2024 Master Circular consolidated earlier guidelines from various circulars into a unified framework for FPIs, DDPs and eligible foreign investors.
SEBI’s Ask: With this consultation, SEBI is seeking stakeholders’ comments on potential changes — perhaps to update compliance norms, streamline processes, or address ambiguities in the current framework.
Who’s Impacted: The review affects registered FPIs, DDPs, custodian intermediaries, and eligible foreign investors — essentially all non-resident entities investing in Indian securities.
Context: The original 2024 Circular had superseded earlier versions (including the 2022 master circular and several other circulars) to bring consistency in regulations.
What’s at Stake: Depending on feedback received and revisions adopted, revisions may ease regulatory burdens or introduce fresh compliance requirements — with potential implications for foreign capital flows and operational workflows for intermediaries.

Next Steps

SEBI will collate comments received during the consultation and possibly publish a revised master circular. Market participants — especially FPIs and DDPs — should monitor developments closely to adjust compliance and investment strategies accordingly.

Source: SEBI official circular

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