SEBI Proposes Regulatory Reforms for FPI Funding The Securities and Exchange Board of India (SEBI) has released a consultation paper outlining pivotal structural changes for Foreign Portfolio Investors (FPIs). This initiative aims to modernize the current framework by prioritizing operational efficiency and optimizing capital flows within the Indian market. A primary driver for these updates is the reduction of the **Cost of Funding** for international entities. By streamlining regulatory requirements, SEBI intends to lower the financial barriers associated with entering and maintaining positions in domestic securities. SEBI anticipates that these enhancements will significantly bolster market liquidity. The proposed shifts are designed to create a more competitive environment, ensuring that foreign institutional capital can be deployed with greater speed and reduced overhead.