SEBI Directs Foreign Portfolio Investors to Pay Registration Fees in INR

The Securities and Exchange Board of India (SEBI) has revised the fee-payment framework for foreign investors, moving away from the existing US dollar-denominated structure and introducing registration and related fees in Indian rupees.

SEBI has formally published the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2026, as part of the regulatory changes governing Foreign Portfolio Investors (FPIs). The amendment regulations were listed on SEBI's website on July 7, 2026.

The move follows SEBI's consideration of a proposal covering the payment of registration and related fees by FPIs and Foreign Venture Capital Investors (FVCIs) in Indian rupees, along with changes concerning the capture of date of birth or date of incorporation details for foreign investors.

FPI and FVCI Fees Shifted to Rupee-Based Structure

Under the revised framework, the earlier dollar-denominated fees are being replaced with specified rupee amounts payable in eligible foreign exchange equivalent.

One of the amendments replaces the earlier US$1,000 fee with ₹90,000, while the registration fee applicable to Category-I FPIs and FVCIs has been revised from US$2,500 to ₹2.3 lakh. Related late fees and continuation fees have also been revised under the amended framework.

The revised provisions are set to become effective after a transition period of six months, giving affected foreign investors and market intermediaries time to modify their payment and compliance processes.

Designated Depository Participants Given Payment Timeline

The amended framework also provides for a defined timeline for remittance of registration fees.

Designated Depository Participants, which play a key role in the registration and servicing of FPIs in India, will be required to remit the applicable fee to SEBI within five working days from the grant of registration.

The shift to a rupee-linked structure is expected to simplify fee administration and reduce operational difficulties associated with accounting and invoicing of dollar-denominated payments.

According to reporting on the regulatory change, the earlier system involved manual accounting and invoicing processes and did not provide real-time accounting visibility, resulting in operational delays, including in financial reporting.

Common Application Form to Capture Additional Details

SEBI has also moved to update the registration process for FPIs by requiring additional information in the Common Application Form.

The form will include the applicant's date of birth, in the case of an individual, or date of incorporation, in the case of an entity, to facilitate the Permanent Account Number (PAN) application and allotment process.

This change is intended to streamline the onboarding process for foreign investors and improve coordination between FPI registration and PAN-related requirements.

Custodian Fee Collection Frequency Also Revised

SEBI has additionally revised the frequency of fee collection from custodians.

The earlier annual payment structure of ₹10 lakh per year has been changed to a monthly payment mechanism of ₹85,000 per month.

The regulator's board agenda had separately considered the proposal for revising the frequency of custodian fee collection alongside the FPI and FVCI fee reforms.

Move Aimed at Simplifying Foreign Investor Compliance

The regulatory amendments mark another step in SEBI's effort to simplify the operational framework for overseas investors participating in Indian securities markets.

By shifting FPI and FVCI registration-related payments from dollar-denominated fees to fixed rupee amounts payable through eligible foreign exchange, the regulator has sought to create greater certainty in fee administration and simplify accounting and reconciliation processes.

The latest changes also combine fee rationalisation with improvements in investor onboarding, particularly through the addition of date of birth and date of incorporation details for PAN-related processing.

For FPIs, FVCIs, custodians and Designated Depository Participants, the six-month transition period will be important for updating internal processes, payment systems and registration workflows before the revised framework becomes operational. CA Sansaar