India's markets regulator and central bank are in advanced talks to simplify entry procedures for new overseas investors, according to reports, at a time when foreign investment into the economy remains low.

The changes would include fewer and more standardised documents, as well as less scrutiny of investors who are already regulated in other countries. According to sources with direct knowledge of the matter, this will reduce the registration time in India from nearly six months to 30-60 days, bringing it in line with global standards. They declined to be named because the discussions are private.

Key Highlights

• SEBI & RBI plan to cut foreign investor registration time from six months to just 30-60 days.
• Reduced documentation and scrutiny especially for investors already regulated abroad, boosting appeal for overseas capital.

"To facilitate the ease of investments by foreign investors in India, we are engaging with various stakeholders to streamline the know-your-customer norms across the regulators," Tuhin Kanta Pandey, chairman of India's markets regulator, said last week, without providing further details.

The proposed changes come as India faces harsh trade tariffs from the United States, creating uncertainty for the economy and its markets.

Foreign investors have sold a net $10 billion in Indian equities and bonds so far in 2025, with selling intensifying in July and August due to weak corporate earnings and US tariff concerns.

Top Indian regulatory officials have met with over 200 global asset managers from Europe, Asia, and the United States in the last five months to solicit feedback on how to make Indian markets more accessible.

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Separately, a delegation of investors from six countries met with officials from India's RBI, SEBI, exchanges, and finance ministry earlier this month. As part of the changes, the central bank will match SEBI's more liberal documentation requirements for regulated overseas pooled funds, such as insurance and mutual funds, which are deemed low-risk.

"In 2019, SEBI relaxed documentary requirements for regulated public retail funds, putting them on par with government-owned funds. The RBI has not yet implemented a similar relaxation, according to the report.

The RBI will also align norms for foreign investors opening bank accounts with SEBI registration requirements. Currently, the RBI requires banks to conduct a risk-based assessment, which includes obtaining a declaration on the source of funds and proof of identity, among other requirements.

Market Regulator SEBI has also recently launched a website for foreign investors and is investigating whether it will allow them to submit registration documents directly.

"Both SEBI and RBI have been very responsive and pro-active this year in finding ways to make it easier for foreign investors to invest in India," said Eugenie Shen, managing director of Asia Securities Industry & Financial Markets Association, an offshore investor lobbying organization.