Sebi Shifts FPI Registration Fees to Indian Rupee Model
India's Securities and Exchange Board (Sebi) has amended foreign investor registration requirements, mandating that Category-I FPIs and FVCIs pay registration fees in Indian rupees at Rs 2.3 lakh, effective within six months. The change includes new application requirements for date of birth information and a five-day payment forwarding deadline for depository participants.
Sebi has announced modifications to its foreign portfolio investor registration framework, introducing a rupee-denominated fee structure for international market participants. According to the announcement, Category-I FPIs and FVCIs will now be required to pay Rs 2.3 lakh as registration fees under the new model, which becomes effective within a six-month implementation window. The regulatory adjustment also introduces additional procedural requirements, including mandatory date of birth disclosure in the common application form. Depository participants have been directed to ensure that all collected fees are remitted to Sebi within five business days, strengthening the payment collection and processing timeline.
This regulatory shift carries significance for India's capital markets infrastructure and the foreign investment landscape. The transition from foreign currency-based to rupee-denominated fees reflects Sebi's broader push toward standardization and domestic currency settlement for regulatory transactions. For foreign investors and market participants, the change necessitates operational adjustments in fee payment procedures and compliance protocols. The five-day forwarding deadline for depository participants introduces stricter cash flow management requirements. These modifications may influence the cost structure and administrative burden for international investors entering Indian markets, while potentially simplifying Sebi's accounting and revenue recognition processes. The implementation timeline provides stakeholders adequate preparation period to align their systems and procedures with the new rupee-based framework.
Source: Markets-Economic Times
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