India to Simplify Foreign Investment in Government Bonds

Recently, the Securities and Exchange Board of India (Sebi) is evaluating a plan to simplify the registration process for foreign investors in Indian government bonds.

SEBI is considering removing certain registration requirements for foreign investors focused solely on Indian government bonds, according to board member Ananth Narayan.
The move comes as foreign investments in Indian government bonds have surged, with net inflows reaching Rs 23,507 crore ($2.8 billion) in August, following JPMorgan Chase’s inclusion of Indian bonds in its emerging market index.
India’s weight in the index is set to increase from 3% to 10% by March 2025, driving further foreign interest in Indian bonds.
The regulator is also contemplating easing the registration process for sovereign wealth funds and public retail funds, which are otherwise exempt from additional disclosures.
A dedicated cell for foreign portfolio investors has been established by SEBI to address issues and facilitate the registration process, aiming to attract high-quality overseas investments.