MUMBAI — India’s markets regulator on Friday made it easier for sovereign-backed and overseas retail funds to access the local markets with simplified rules, a move expected to ease access for nearly two-thirds of foreign investors.
The relaxation comes at a time when India has seen foreign outflows gather pace, pressured by steep U.S. tariffs, tepid earnings, and higher equity valuations. So far in 2025, overseas investors have pulled out $11.7 billion from Indian shares and debt.
Through the single-window clearance system, investors seen as low risk will need to provide fewer documents and meet lower compliance requirements.
“This initiative seeks to reduce regulatory complexity, simplify compliance and enhance India’s global competitiveness as an investor-friendly destination,” the Securities and Exchange Board of India said in a statement.
