The Securities and Exchange Board of India (SEBI) has amended the Foreign Portfolio Investors (FPI) Regulations by replacing the US dollar-based registration fee structure with a rupee-denominated payment system. The move, effective after six months, aims to simplify compliance, improve accounting efficiency and streamline registration for foreign investors.
Key Highlights
- SEBI shifts FPI registration fees from US dollars to Indian rupees.
- New fee structure will be implemented after a six-month transition period.
- Registration fee revised to Rs 90,000 and Rs 2.3 lakh for Category-I FPIs and FVCIs.
- Changes aim to simplify compliance, accounting and PAN-related processes.
The Securities and Exchange Board of India (SEBI) has introduced significant changes to the Foreign Portfolio Investors (FPI) Regulations by replacing the existing US dollar-based registration fee structure with a rupee-denominated payment mechanism. The revised framework will come into force after six months, providing foreign investors and market intermediaries enough time to adapt.
Under the new rules, the registration fee of $1,000 has been replaced with Rs 90,000, while the fee for Category-I Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs) has been revised from $2,500 to Rs 2.3 lakh. SEBI has also updated the continuance and late fee structure under the amended regulations.
To ensure greater transparency, Designated Depository Participants (DDPs) will now be required to transfer the collected registration fees to SEBI within five working days of granting registration. This measure is expected to strengthen financial reporting and improve operational efficiency.
SEBI has also simplified the FPI registration process by adding the date of birth or date of incorporation to the common application form. The change supports smoother Permanent Account Number (PAN) applications in accordance with the CBDT notification issued earlier this year.
According to SEBI, the shift to a rupee-based fee system will eliminate several operational challenges associated with the dollar-based model, including manual accounting, invoicing complexities, lack of real-time accounting visibility and delays in financial reporting. Additionally, custodians will now pay a monthly fee of Rs 85,000, replacing the earlier annual payment of Rs 10 lakh.
Conclusion
SEBI’s transition to a rupee-denominated fee structure marks another step towards simplifying foreign investment regulations while improving operational efficiency and ease of doing business in India’s capital markets.
