Security and Exchange Board of India
Market regulator SEBI has made major changes in its rules for Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs). Till now these foreign investors had to pay fees in US dollars for their registration in India, but now this will not happen. SEBI has now fixed the fees directly in Indian Rupees instead of dollars. This step is being considered an important decision towards promoting the use of Indian currency. According to the notification issued by the regulator, this new market rule will be fully implemented exactly six months from today.
Fees will have to be paid in rupees instead of dollars
The biggest change under this new decision has been regarding the amount of registration charge. SEBI has clarified in its notification issued on July 3 that the fee which was till now fixed at US $ 2,500 for Category-I Foreign Portfolio Investors (FPIs) as well as FVCI, has now been directly changed to Rs 2.3 lakh. With this, foreign institutional investors will not have to worry about currency exchange rate fluctuations. They will have to pay a fixed amount of Indian currency at the time of registration.
It is mandatory to mention date of birth or date of formation in the form.
Apart from fees, there have also been changes in paperwork to simplify the registration process. The market regulator has updated the common application form used for FPI registration. Now it has been made mandatory to enter the date of birth of the person applying or the date of incorporation of the company in this form. The main reason behind this is to make the process of issuing Permanent Account Number (PAN) easier. In fact, the Central Board of Direct Taxes (CBDT) had issued a new instruction in March this year, after which this information has been made mandatory with the aim of making PAN application easier.
5 day deadline fixed for designated participants
Under the new rules, strict deadlines have also been set for Designated Depository Participants (DDPs). When any DDP collects the initial registration fee from a foreign investor, he will have to send this amount to SEBI in Indian currency (INR). This work will have to be completed by the foreign portfolio investor within the next five working days from the date of receipt of the registration certificate. The regulator has clearly said that along with the fees, necessary information in the prescribed format will also have to be submitted to SEBI on time, so that the work continues without any interruption.
SEBI earns handsomely from registration
The attraction of foreign investors towards the Indian market continues. According to official data, the market regulator has collected a huge amount of $12.98 million from foreign portfolio investors and venture capital investors during the financial year 2025-26. This money has been raised in the form of new registration, renewal and other charges. The amount of Goods and Services Tax (GST) is also included in this collection. Now when the entire fee structure will be changed to rupees, in the coming time this income related to foreign investors will be directly recorded in Indian currency.
