At present, only certain institutional investors meeting SEBI’s criteria can register as FPIs to invest in foreign securities.

The proposed changes focus on retail-oriented investment schemes set up in IFS, would allow a broader range of India-based entities to channel domestic capital into foreign assets through a regulated framework.

This could provide domestic investors with more diversified investment options, including exposure to foreign equities, bonds, and other instruments, without the need for them to invest directly abroad.

The move comes as India continues to position IFSCs as global financial hubs and deepen integration with international capital flows.

It also aligns with the Reserve Bank of India’s liberalised remittance scheme, which allows individuals to remit up to Rs 250,000 annually for overseas investments, but often leaves retail investors reliant on indirect channels for foreign exposure.