The Securities and Exchange Board of India (SEBI) has proposed changes to make it easier for overseas investors to access higher-risk investment products and strategies in India.

The move is part of the regulator’s broader effort to deepen Indian financial markets and attract more global capital. Under the proposal, SEBI wants to revise the framework for accredited investors, a category generally made up of financially sophisticated individuals and entities that meet specific income or net-worth requirements.

These investors could receive access to investment opportunities that are currently subject to greater restrictions.

The proposal comes as India’s financial markets continue to expand and become more sophisticated. SEBI believes that allowing experienced investors greater flexibility could increase participation in products designed for investors who can better understand and manage higher levels of risk.

The move could also make India more attractive to global investors looking for a wider range of investment opportunities. Greater participation from overseas investors could improve market depth and liquidity while bringing additional capital into India’s financial system.

The latest proposal is part of a wider series of measures by SEBI aimed at making it easier for foreign investors to participate in Indian markets. Earlier this week, the regulator also proposed allowing foreign portfolio investors to participate in physically settled non-agricultural commodity derivatives, including contracts linked to crude oil, natural gas, gold and silver.

However, the proposed changes do not mean that all overseas investors would immediately gain unrestricted access to risky products. The accredited-investor framework is designed to distinguish financially sophisticated investors from those who may require stronger regulatory protections.

For India’s financial markets, the proposal could be significant. If implemented, greater access to sophisticated investment products could help attract more global capital, improve liquidity and strengthen India’s position as an international investment destination.

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