{"id":90791,"date":"2026-07-14T17:48:02","date_gmt":"2026-07-14T12:18:02","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=90791"},"modified":"2026-07-14T17:48:06","modified_gmt":"2026-07-14T12:18:06","slug":"sebi-introduce-inr-based-registration-fees-for-fpis-and-fvcis","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/sebi-introduce-inr-based-registration-fees-for-fpis-and-fvcis\/","title":{"rendered":"SEBI Introduces INR-Based Registration Fees for FPIs and FVCIs"},"content":{"rendered":"

SEBI has made important changes to the Foreign Portfolio Investor (FPI) Regulations to make foreign investment in the Indian capital market<\/a> easier and more transparent. With this amendment<\/a>, the registration fee of Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs) will no longer be denominated in US dollars (USD). Instead, the fee has been fixed in Indian rupees (INR). <\/p>\n\n\n\n

SEBI has said that this new rule will come into effect after the end of a six-month transition period. So, this change is quite important for foreign investors, Designated Depository Participants (DDPs), custodians, and institutions interested in investing in India. It will simplify the fee collection and compliance process. <\/p>\n\n\n\n

In this article, we will discuss the new fee structure, the reason for the change, who will be covered by it, and the impact of this amendment. <\/p>\n\n\n\n

What is the New Amendment Regarding SEBI’s FPI Registration Fee? <\/h2>\n\n\n\n

On July 3, 2026, SEBI issued the SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2026. This amendment simplifies and streamlines the registration fee payment procedure for foreign investors. <\/p>\n\n\n\n

Earlier, the registration fee for FPIs and FVCIs was payable in US dollars. The fee has now been denominated in Indian rupees. This will make the fee collection, accounting<\/a>, and payment process easier. <\/p>\n\n\n\n

SEBI also stated that this amendment will not come into effect immediately upon publication. Market participants have been given six months to prepare. During this period, foreign investors, DDPs, custodians, and other related institutions will be able to update their internal systems and processes as per the new rules. <\/p>\n\n\n\n

Through this change, SEBI wants to create a more transparent, digital, and easy compliance system. <\/p>\n\n\n\n

New Rupee-based Registration Fee Structure <\/h2>\n\n\n\n

Category-I FPIs and FVCIs <\/h3>\n\n\n\n

SEBI has changed the registration fee for Category-I Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs) as per the new rules. Earlier, this fee was USD 2,500. Now it has been fixed at ₹2.3 lakh. So, applicants can deposit the fee directly in Indian Rupees. <\/p>\n\n\n\n

Category-II FPIs <\/h3>\n\n\n\n

A similar change has been made in the case of Category-II FPIs. Earlier, the registration fee was USD 250. According to the new rules, it has increased to ₹23,000. This will reduce the hassle of converting dollars to rupees a lot. <\/p>\n\n\n\n

Application for Regulatory Relaxation <\/h3>\n\n\n\n

An application must be made to SEBI for special exemption or regulatory relaxation. Earlier, the application fee was USD 1,000. Now it has been changed to ₹90,000. However, there may be an opportunity to deposit an equivalent amount in an approved foreign currency as per SEBI guidelines. <\/p>\n\n\n\n

Late Fees and Continuance Charges <\/h3>\n\n\n\n

Not only the registration fee but also the late fee and continuance charges have now been fixed in Indian rupees. The amount of these fees may vary depending on the situation. So, before applying, one should check the latest fee structure in the official SEBI notification. <\/p>\n\n\n\n

New Fee Structure <\/h3>\n\n\n\n
Registration Category<\/strong> <\/td>Previous Fee<\/strong> <\/td>Revised Fee<\/strong> <\/td><\/tr>
Category-I FPIs & FVCIs <\/td>USD 2,500 <\/td>₹2.3 lakh <\/td><\/tr>
Category-II FPIs <\/td>USD 250 <\/td>₹23,000 <\/td><\/tr>
Applications for Regulatory Relaxation <\/td>USD 1,000 <\/td>₹90,000 <\/td><\/tr>
Late Fees & Continuance Charges <\/td>USD-based <\/td>INR-based (as specified by SEBI) <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Why did SEBI introduce Rupee-based Fees instead of Dollar-based Fees? <\/h2>\n\n\n\n

SEBI introduced rupee-based fees to increase administrative efficiency and simplify the compliance process. Earlier, collecting fees in dollars often created additional calculation, conversion, and reporting problems. The new INR-based system will reduce complexity. <\/p>\n\n\n\n

The key reasons for this are<\/strong>– <\/p>\n\n\n\n