SEBI Moves FPI Registration Fee From Dollars to Rupees
Why in the news
SEBI revised the Foreign Portfolio Investors Regulations so that registration fees are paid in rupees rather than US dollars. The new rules apply after six months.
Key facts
- Fee: Rs 2.3 lakh now, against USD 2,500 earlier for Category-I FPIs and FVCIs; aim is to end reliance on dollar payments.
- PAN link: date of birth or incorporation date is now compulsory.
- Remittance: DDPs must send collected fees to SEBI within 5 working days of granting registration.
- Effective: six months after the amendment.
Reasons for the change
- Easier fee collection, no foreign currency issues, cleaner accounting.
Terms
- FPI: foreign investor in Indian shares, bonds and mutual funds.
- FVCI: foreign investor in venture capital funds or start-ups.
- DDP: SEBI-authorised intermediary handling FPI registration.
- FPI is indirect and short-term with no management control; FDI is long-term with ownership and control.
Exam angle
- Regulator: SEBI; fee moved from USD 2,500 to Rs 2.3 lakh.
- Related terms: FPI, FVCI, DDP, PAN.
- FPI versus FDI differences are common questions.