SEBI shifts FPI registration fees from US dollar to rupee denomination
Mumbai, July 8
The Securities and Exchange Board of India has notified amendments to the Foreign Portfolio Investors Regulations, replacing the US dollar-denominated fee structure with a rupee-denominated payment mechanism for foreign investors and foreign venture capital investors.
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
Reader Comments
I appreciate the intent to simplify, but why give six months? Should have been implemented faster, since most FPI are already digital. Still, Rupee domination = self-reliance, and that's always good.
As a foreign investor, this is interesting. Rupee-denominated fees mean less currency risk for us too. The real-time accounting fix is overdue—manual invoicing was a pain. Well played, SEBI.
Great initiative, but will this increase costs for FPIs? $1000 to Rs 90k is almost same at current rates, but GST implications? Hope SEBI clarifies if total burden unchanged. Otherwise, good move towards Atmanirbhar Bharat.
Simplified registration with PAN integration? Finally! As a foreign bank, filing used to be messy. This is a welcome step. Only concern: five days to remit fees to SEBI via DDPs—hope that's flexible enough.
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