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UPSC » Daily News Analysis ‘SEBI’s SWAGAT-FI Framework and Market Reforms’ : 13 September

Daily News Analysis ‘SEBI’s SWAGAT-FI Framework and Market Reforms’ : 13 September

Table of Content

SWAGAT-FI Framework:

  • Full form: Single Window Automatic & Generalised Access for Trusted Foreign Investors.
  • Aim: Unified registration for FPIs & FVCIs, simplify compliance, reduce regulatory complexity.
  • Eligible Investors: Govt./Govt-related investors, regulated Public Retail Funds (PRFs) such as mutual funds, insurance companies, pension funds.
  • Conversion: Existing FPIs that qualify may convert to SWAGAT-FI.
  • Implementation Timeline: 6 months.

IPO Norms Relaxation:

  • For large companies (Market Cap: ₹1–5 lakh crore).
  • Recommended minimum public offer: 2.75%.
  • Final decision to be taken by the Government.

IPO Anchor Investor Quota:

  • Anchor portion in IPOs increased from one-third → 40%.
  • Division:
    • One-third reserved for domestic mutual funds.
    • Rest for life insurance companies & pension funds.

Related Party Transactions (RPTs):

  • New scale-based thresholds introduced.
  • Based on annual consolidated turnover of the listed entity.

Related Party Transactions (RPTs):
A transaction between a company and its related parties (such as its promoters, directors, key managerial personnel, subsidiaries, associates, or relatives of these persons). RPTs are transactions between a company and entities closely connected with it, regulated to ensure transparency and protect investor interests.


Market Infrastructure Institutions (MIIs):

Backbone of the Indian securities market (Stock Exchanges + Clearing Corps + Depositories), regulated by SEBI to ensure fair, transparent, and stable financial markets.

Alternative Investment Funds (AIFs):

  • New category introduced: AI-only schemes (limited to accredited investors).
  • Relaxed compliance norms compared to regular AIFs.

Mutual Fund Reforms:

  • Exit load reduced: from 5% → 3%.
  • New incentive structure for distributors to boost mutual fund inflows from B-30 cities (beyond top 30).

Why in News?

  • SEBI announced key proposals to enhance ease of doing business for Foreign Portfolio Investors (FPIs) and strengthen capital market regulations.