New Delhi, July 3 (IANS) 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 existing system of payments in US dollars (USD), according to board meeting documents.
The proposal is aimed at streamlining fee collection, improving accounting efficiency and reducing operational challenges associated with foreign currency transactions.
SEBI collected a total of $12.98 million, including Goods and Services Tax (GST), in FY26 through registration, continuation and other fees paid by FPIs and FVCIs.
According to the regulator, the current mechanism 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 charges and foreign exchange conversion costs frequently lead to shortfalls in the fees received or create reconciliation discrepancies. It added that considerable time and manpower are spent coordinating across departments to resolve such issues, leading to an opportunity cost.
Under the proposal, FPIs and FVCIs will pay registration fees in eligible foreign exchange equivalent to the amount specified by Sebi in INR terms to the designated depository participant (DDP) before the registration is granted.
The DDP will then be required to remit the fees to Sebi within five working days of the grant of registration.
SEBI has proposed revising the registration fee for Category-I FPIs and FVCIs from the current $2,500 to Rs 2.3 lakh. The regulator is also considering changes to late payment charges and renewal fees.
At present, FPI registrations are valid for three years, while specified trusted FPIs registered under the Swagat-FI route receive a registration validity of 10 years. Registrations granted to FVCIs remain 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 intended to strengthen the registration process and improve the quality of applicant information maintained by the regulator.
–IANS
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