The Securities and Exchange Board of India (SEBI) has introduced a major change in the fee structure for Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs). Foreign investors registering in India will now have to pay their registration fees in Indian rupees instead of US dollars.

The move is being seen as a step towards encouraging the use of the Indian currency and reducing the impact of exchange rate fluctuations for foreign investors.

Fixed Registration Fee in Indian Currency

Earlier, Category I FPIs and FVCIs had to pay a registration fee of $2,500. Under the new rules, SEBI has converted this into a fixed rupee amount.

The revised registration fee has been set at ₹2.3 lakh.

This means foreign investors will no longer need to calculate dollar-to-rupee exchange rates while making payments. They will pay a fixed amount directly in Indian currency.

According to SEBI’s notification issued on July 3, the new rules will come into effect after six months.

Changes Made in Registration Application Form

SEBI has also updated the common application form used for FPI registration.

Now, applicants will have to provide:

• Date of birth (for individuals)
• Date of incorporation or formation (for companies and entities)

This information will help simplify the process of issuing Permanent Account Numbers (PANs).

The change follows a directive issued by the Central Board of Direct Taxes (CBDT) earlier this year, making these details mandatory for smoother PAN processing.

DDPs Must Deposit Fees Within 5 Working Days

The new rules also place responsibility on Designated Depository Participants (DDPs).

After collecting the registration fee from foreign investors, DDPs must transfer the amount to SEBI in Indian rupees within five working days of issuing the registration certificate.

SEBI has instructed DDPs to submit both the payment and required details in the prescribed format within the given deadline.

SEBI Earns Millions From Foreign Investor Registrations

Foreign investors continue to show strong interest in Indian markets.

During the financial year 2025–26, SEBI reportedly collected around $12.98 million through registration fees, renewals, and other charges from FPIs and venture capital investors, including applicable GST.

With the fee structure now shifted to rupees, future collections from foreign investors will be recorded directly in Indian currency.

Why This Change Matters

The new rule is expected to:

• Reduce currency conversion concerns for investors
• Make the payment process simpler
• Increase transparency in fee collection
• Support wider use of the Indian rupee in financial transactions

SEBI’s move reflects the growing role of Indian markets globally and the regulator’s efforts to streamline foreign investment procedures.