Business EconomyPosted at: Jul 8 2026 3:20PM


SEBI shifts FPI fee payments to rupee-based system; allows six-month transition

New Delhi, Jul 8 (UNI) The Securities and Exchange Board of India (Sebi) has notified amendments to the Foreign Portfolio Investors (FPI) Regulations, replacing the existing US dollar-denominated fee structure with a rupee-based payment system for foreign portfolio investors (FPIs) and foreign venture capital investors (FVCIs). The revised framework will come into effect in six months, providing overseas investors and intermediaries with adequate time to transition to the new regime.
Under the amended regulations, the existing fee of US $1,000 has been replaced with Rs 90,000 in eligible foreign exchange equivalent, according to a notification issued by Sebi.
The market regulator has also revised the registration fee for Category-I FPIs and FVCIs from US $2,500 to Rs 2.3 lakh. In addition, late fees and continuance fees have been recalibrated under the new rupee-denominated structure.
As part of the revised framework, designated depository participants (DDPs), which process FPI registrations and facilitate foreign investors' access to Indian markets, will be required to remit the fees collected to Sebi within five working days of granting registration.
In another compliance-related change, Sebi has expanded the common application form for FPI registration to include the applicant's date of birth or date of incorporation. The amendment is aimed at facilitating Permanent Account Number (PAN) applications in line with the Central Board of Direct Taxes' (CBDT) notification issued in March.
According to SEBI, it collected $12.98 million, including GST, during FY26 through registration, continuation and other fees paid by FPIs and FVCIs.
The regulator said the move to a rupee-based fee structure is expected to simplify operations by eliminating manual accounting and invoicing associated with US dollar payments. The existing system often resulted in delays in accounting, limited real-time visibility of fee receipts and slower financial reporting.
Sebi has also revised the fee payment mechanism for custodians, replacing the current annual payment of Rs 10 lakh with a monthly payment of Rs 85,000, a move intended to improve operational efficiency and streamline fee collection.
Separately, the regulator has amended the Mutual Fund Regulations to allow mutual funds to avail of intraday borrowing to bridge temporary funding mismatches arising from differences in pay-in and pay-out settlement timings, foreign exchange settlements and other transactions.
The facility will be in addition to the existing provision that permits mutual fund schemes to borrow up to 20 per cent of their net assets to meet temporary liquidity requirements, such as redemption payouts.
SEBI said asset management companies (AMCs) will be responsible for ensuring that intraday borrowings are repaid by the end of the day. In cases where such borrowings extend beyond the same day, AMCs will have to comply with the regulatory provisions governing overnight borrowing under the Mutual Fund Regulations. UNI VK AAB
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