Summary of this article
Foreign investors will now pay Sebi fees in rupees instead of dollars
DDPs must deposit FPI fees with Sebi within five working days
Most changes start after six months; application form changes are immediate
The Securities and Exchange Board of India (Sebi) has amended the regulations for foreign portfolio investors (FPI) and foreign venture capital investors (FVCIs), replacing the existing dollar-denominated fee structure with a rupee-based system. The changes will be implemented after six months from the Gazette notification issued on July 3, 2026.
However, the revised application form requirement is already in force. Only the change to the FPI application form has come into effect immediately.
Fees To Be Denominated In Rupees
Under the amended regulations, fees that were earlier fixed in dollars will now be set in rupees. However, foreign investors can continue to pay them in an equivalent eligible foreign currency.
The continuance fee under Regulation 43B(2) has been changed from $1,000 to Rs 90,000. Registration fees for Category I FPIs have been revised from $2,500 to Rs 2.30 lakh, while the reduced fee has been changed from $250 to Rs 23,000.
Sebi has also replaced late fees of $50 per day and $5 per day with Rs 4,500 per day and Rs 500 per day, respectively. In addition, the regulatory fee for offshore derivative instrument subscribers has been revised from $800 to Rs 75,000 in eligible foreign exchange equivalent.
DDPs To Remit Fees Within Five Working Days
The amended regulations require designated depository participants (DDPs) to deposit the fees collected from FPIs to Sebi in Indian rupees.
For new registrations, DDPs must transfer the fee within five working days from the date the certificate of registration is granted. For renewal and late fees, the remittance must be made within five working days of receiving the payment from the FPI, along with details in the prescribed format.
Application Form Updated
Sebi has also modified the FPI application process by adding fields to capture the date of birth, incorporation, agreement, partnership deed, trust deed or formation of a body of individuals or association of persons, depending on the applicant's legal structure. This amendment has come into force immediately.
The notification also removes the requirement in Regulation 3(2) referring to payment of the fee specified in Part A of the Second Schedule at the time of application, aligning the provision with the revised fee payment mechanism.
