SEBI operationalises SWAGAT -FI framework for FVCIs

Pursuant to the Securities and Exchange Board of India (Foreign Venture Capital Investors) (Amendment) Regulations, 2025 notified on December 1, 2025 (which can be accessed here), which amended the Securities and Exchange Board of India (Foreign Venture Capital Investors) Regulations, 2000 (FVCI Regulations) to introduce a comprehensive regulatory framework specifically designed for trusted foreign investors, the Single Window Automatic and Generalised Access for Trusted Foreign Investor (SWAGAT-FI) framework, SEBI has now issued a circular dated January 16, 2026 (Circular) modifying the existing operational guidelines for Foreign Venture Capital Investors (FVCIs) and Designated Depository Participants (DDPs) issued on September 26, 2024 (Circular on Operational Guidelines).

The Circular, effective from June 1, 2026, sets out modifications to the Circular on Operational Guidelines to operationalise the simplified on‑boarding and ongoing compliances for FVCIs designated as SWAGAT-FIs.

Key highlights of the Circular have been outlined below:

1. Unified registration process for SWAGAT-FI FVCIs and FPIs:

• • A SWAGAT-FI FVCI applicant may apply for registration as an FVCI together with its application for registration as a Foreign Portfolio Investor (FPI), without separately filing an FVCI application form or submitting duplicate supporting documents.

• • The combined application will be processed on the basis of the information and documents submitted by the applicant in connection with its FPI registration

• • This facility is subject to the condition that the applicant appoints the same custodian and the same DDP for its FVCI registration as appointed for its FPI registration.

• • An existing FVCI that meets the requirements to qualify as a SWAGAT-FI FPI may convert to a SWAGAT-FI FVCI by making an application to its DDP.

• • As with fresh applications, such conversion is conditional on the FVCI appointing the same custodian and DDP for its FVCI registration as those appointed for its FPI registration.

2. Renewal fee payment and information update cycles: 

• • FVCIs registered on or before December 31, 2019 must pay their renewal fee to their DDP and intimate any changes in previously submitted information on or before March 31, 2025.

• • For subsequent five-year blocks (or ten years in the case of SWAGAT-FI FVCIs) starting from January 1, 2030, these FVCIs must pay the renewal fee to their DDP and intimate any changes in information previously submitted, at least 15 days before the completion of the previous five-year block, in order to continue with their registration.

• • FVCIs registered after December 31, 2019 must pay the renewal fee to their DDP and intimate any changes in the information previously submitted, at least 15 days before the completion of five years (or ten years in the case of SWAGAT-FI FVCIs) from the date of their initial registration, to continue their registration for the next five-year block.

3. Extended KYC review periodicity: For SWAGAT-FI FVCIs, the periodicity of Know-Your-Customer (KYC) review shall be ten years, rather than the shorter three-or five-year review cycles applicable to regular FVCIs.

Conclusion:

The Circular is a key step in operationalising the SWAGAT-FI framework on the venture capital side of the foreign investment ecosystem. By enabling a single‑window FPI–FVCI application for eligible SWAGAT-FI investors, extending renewal and KYC review cycles, and harmonising custodian and DDP appointments, SEBI has sought to materially simplify the on‑boarding and ongoing compliance burden for trusted FVCIs, while maintaining supervisory oversight through the existing regulatory architecture.