Mumbai: The Securities and Exchange Board of India (SEBI) has notified amendments to the Foreign Portfolio Investors (FPI) Regulations, replacing the US dollar-denominated fee structure with a rupee-denominated payment mechanism for foreign investors and foreign venture capital investors (FVCIs).
The changes will come into effect after six months, giving foreign investors and intermediaries adequate time to transition to the new system.
According to a notification issued by SEBI, the existing fee of $1,000 has been replaced with Rs 90,000 in eligible foreign exchange equivalent.
The registration fee for Category-I FPIs and FVCIs has also been revised from $2,500 to Rs 2.3 lakh. The market watchdog has similarly revised the late fee and continuance fee.
Under the amended rules, designated depository participants (DDPs) will be required to remit the fees collected from FPIs and FVCIs to Sebi within five working days of granting registration.
In addition, the regulator has simplified the registration process by including the date of birth or date of incorporation in the common application form for FPI registration.
The change is aimed at facilitating Permanent Account Number (PAN) applications in line with the notification issued by the Central Board of Direct Taxes (CBDT) in March.
Sebi collected $12.98 million, including GST, during the financial year 2025-26 from registration, continuation and other fees paid by FPIs and FVCIs.
The regulator said the move to a rupee-denominated fee structure addresses operational challenges arising from the existing dollar-based system, including manual accounting and invoicing, the lack of real-time accounting visibility, and delays in financial reporting.
Moreover, the regulator has revised the fee payment mechanism for custodians, replacing the annual payment of Rs 10 lakh with a monthly payment of Rs 85,000.
(IANS)
