Changes to the Foreign Portfolio Investors (FPI) Regulations have been notified by the Securities and Exchange Board of India (SEBI). These changes replace the dollar-denominated fee system with a rupee-denominated payment mechanism for foreign venture capital investors (FVCIs) and foreign investors.
The new system will go into effect in six months, giving foreign investors and intermediaries enough time to make the transition.
The existing fee of $1,000, according to a SEBI announcement, has been changed to Rs 90,000 in qualifying foreign currency equivalent.
From $2,500 to Rs 2. 3 lakh, the registration cost for FPIs and FVCI in Category-I has also been changed. In a similar vein, the market regulator has modified the late charge and continuance charge.
In accordance with the revised regulations, designated depository participants (DDPs) will be compelled to transfer the costs obtained from FPIs and FVCIs to SEBI within five working days after registration.
The regulator has also streamlined the registration procedure by adding the date of birth or date of incorporation in the common application form for FPI registration.
The change is designed to make it simpler to apply for Permanent Account Numbers (PANs), in accordance with the Central Board of Direct Taxes (CBDT) notice published in March.
For the financial year 2025-26, Sebi gathered $12. 98 million, inclusive of GST, via the continuation, registration, and other fees paid by FPIs and FVCIs.
According to the regulator, the shift to a rupee-denominated fee system addresses operational issues with the current dollar-based system, such as manual accounting and invoicing, a lack of real-time accounting visibility, and delays in financial reporting.
Furthermore, the regulator has changed the fee payment system for custodians, switching from a monthly payment of Rs 85,000 to an annual payment of Rs 10 lakh.