SEBI has introduced amendments to Foreign Venture Capital Investor and Foreign Portfolio Investor regulations in 2025. The changes streamline registration, strengthen disclosure norms, and align governance frameworks. Aimed at boosting transparency and investor confidence, the reforms balance ease of doing business with stricter compliance in India’s capital markets.
India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has rolled out two major regulatory updates in 2025 aimed at strengthening oversight of overseas investments. These amendments target both Foreign Venture Capital Investors (FVCIs) and Foreign Portfolio Investors (FPIs), reflecting SEBI’s push for greater transparency and alignment with global standards.
Key highlights from the announcement:
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The FVCI Amendment Regulations, 2025 streamline registration and compliance processes, reducing friction for foreign venture capital funds while ensuring stricter governance.
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The Second Amendment to FPI Regulations, 2025 enhances disclosure norms, particularly around beneficial ownership, to curb risks of opaque structures.
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SEBI emphasized that these changes are designed to protect investor interests, promote market development, and ensure India’s securities market remains globally competitive.
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Legal experts note that the amendments align FVCI rules more closely with FPI frameworks, creating a unified regulatory environment for foreign capital inflows.
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Industry watchers expect the reforms to boost investor confidence while balancing ease of doing business with robust compliance.
These updates mark another step in SEBI’s ongoing effort to modernize India’s capital market regulations and attract sustainable foreign investment.
Sources: SEBI official regulations, Trilegal update, Nishith Desai Associates analysis