SEBI proposes to allow FPIs and FVCIs to pay fees in rupees
New Delhi: The Securities and Exchange Board of India (SEBI) on Friday proposed that foreign portfolio investors (FPIs) and foreign venture capital investors (FVCIs) pay registration and related fees in Indian rupees (INR), replacing the current system of payments in US dollars (USD), according to board meeting documents.
The proposal aims to streamline fee collection, improve accounting efficiency, and mitigate operational challenges associated with foreign exchange transactions.
SEBI collected a total of $12.98 million, including goods and services tax (GST), in FY26 through registration, maintenance, and other fees paid by FPIs and FVCIs.
According to the regulator, the current system of receiving fees in US dollars requires manual accounting and invoicing, making the process time-consuming and limiting real-time visibility of financial records. This often results in delays in financial reporting.
The market regulator also pointed out that remittance fees and foreign currency conversion costs often lead to a reduction in fees received or create reconciliation discrepancies. It states that considerable time and manpower are spent coordinating between departments to resolve such issues, leading to opportunity costs.
Under the proposal, FPIs and FVCIs will pay a registration fee in eligible foreign currency equivalent to an amount specified by SEBI in Indian rupees to the Designated Depository Participant (DDP) before registration is granted.
The DDP will have to remit the fee to SEBI within five working days of registration approval.
SEBI has proposed revising the registration fee for Category-I FPIs and FVCIs from the current $2,500 to ₹2.3 lakh. The regulator is also considering changes to late payment fees and renewal fees.
Currently, FPI registrations are valid for three years, while designated trusted FPIs registered under the Welcome-FI route receive a 10-year registration validity. Registrations granted to FVCIs are valid for five years.
Separately, Sebi has proposed changes to the Common Application Form (CAF) used for FPI registration by mandating the inclusion of the applicant’s date of birth or, in the case of entities, the date of incorporation, agreement, trust deed or any other date of formation or partnership. The move is aimed at strengthening the registration process and improving the quality of applicant information maintained by the regulator.
