The Securities and Exchange Board of India (SEBI) has made changes to the Foreign Portfolio Investors (FPI) Regulations, replacing the US dollar fee structure with a rupee payment mechanism for foreign investors and foreign venture capital investors (FVCIs). These amendments will be implemented in six months, allowing for a smooth transition to the new system. SEBI’s notification states that the previous $1,000 fee has been substituted with Rs 90,000 in equivalent foreign exchange.
The registration fees for Category-I FPIs and FVCIs have been adjusted from $2,500 to Rs 2.3 lakh. SEBI has also updated the late fee and continuance fee accordingly. The revised rules mandate designated depository participants (DDPs) to transfer the fees collected from FPIs and FVCIs to SEBI within five working days of registration. Additionally, SEBI has streamlined the registration process by incorporating the date of birth or date of incorporation in the common application form for FPI registration.
The objective of these modifications is to simplify the fee structure by addressing operational challenges associated with the current dollar-based system. These challenges include manual accounting and invoicing, lack of real-time accounting visibility, and delays in financial reporting. SEBI collected $12.98 million, inclusive of GST, in the financial year 2025-26 from registration, continuation, and other fees paid by FPIs and FVCIs. Furthermore, SEBI has revised the fee payment mechanism for custodians, replacing the annual payment of Rs 10 lakh with a monthly payment of Rs 85,000.
