SEBI Launches SWAGAT-FI to Attract Long-Term Foreign Investment

In a move aimed at making India a more attractive investment destination for global funds, the Securities and Exchange Board of India (SEBI) has launched a new regulatory framework titled SWAGAT-FI—Simplified Wrapper Framework for Facilitating Access to GIFT-IFSC for Foreign Investors. Announced on September 16, 2025, this initiative is targeted at easing entry barriers for low-risk foreign investors, such as sovereign wealth funds, pension funds, and long-term institutional investors.

Key Features of SWAGAT-FI

Extended Registration Period

• Under the new framework, eligible foreign investors can now register for a period of 10 years, a significant improvement from the earlier 3-year cycle. This long-term validity reduces administrative hassle and encourages stable, continued investment in Indian markets.

Faster Onboarding and Simplified Access

• A digital portal has been launched, reducing onboarding time from months to just about a week.
• Investors can use a single demat account to manage all investments, streamlining operational processes.
• The framework integrates with the GIFT City IFSC (International Financial Services Centre) ecosystem, enhancing global investor convenience.

Increased Transparency in Public Markets

• SWAGAT-FI also aims to improve disclosure and transparency standards, particularly around initial public offerings (IPOs) and market data access, making India a more predictable and regulated environment for institutional investment.

Strategic Objectives and Global Significance

• This policy shift is designed to attract “patient capital” — investments with a long-term horizon — that help reduce market volatility and strengthen the depth and resilience of India’s capital markets.
• By offering a simpler, cost-effective, and transparent registration process, India hopes to compete more effectively with other financial hubs like Singapore, Dubai, and London, especially in the realm of foreign institutional investments (FII).

Static Facts

• Announced by: Securities and Exchange Board of India (SEBI)
• Framework Name: SWAGAT-FI
• Target Investors: Low-risk foreign investors like sovereign wealth funds, pension funds
• SEBI Chairman: Tuhin Kanta Pandey