Regulatory Updates: Sebi Eases Rules for FPIs & Market Intermediaries

Sebi Board Approves Key Reforms for FPIs, Market Intermediaries, and Conflict of Interest Norms​

Mumbai, March 23, 2026 – The Securities and Exchange Board of India (Sebi) board on Monday approved a wide-ranging set of proposals aimed at easing fund settlement norms for foreign portfolio investors (FPIs), reforming regulatory frameworks for market intermediaries, and enhancing disclosure norms for Sebi officials.

The board also endorsed several recommendations from a high-level committee on conflict of interest and disclosures, chaired by former Chief Vigilance Commissioner Pratyush Sinha. The committee reviewed existing provisions related to conflict of interest, including disclosures of property, investments, liabilities, and other matters by Sebi members and officials.

Key approvals include:

• Ease-of-doing-business reforms for REITs (Real Estate Investment Trusts), InvITs (Infrastructure Investment Trusts), and AIFs (Alternative Investment Funds), including granting flexibility to AIFs in winding up schemes.
• Overhaul of “fit and proper person” criteria for market intermediaries, removing automatic disqualificationtriggered by FIRs, complaints, or charge sheets in economic offence cases.
• Strengthened conflict of interest and disclosure frameworks for Sebi officials to improve transparency and governance.

These reforms aim to enhance investor confidence, simplify compliance for market participants, and strengthen regulatory oversight in India’s capital markets.

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