The Securities and Exchange Board of India (SEBI) has introduced a significant change to the registration process for foreign investors by replacing the existing US dollar-denominated registration fee with a fee payable in Indian rupees.

Under the revised framework, Foreign Portfolio Investors (FPIs) and Foreign Venture Capital Investors (FVCIs) will now pay their registration fees in rupees instead of US dollars. 

The move is aimed at streamlining the registration process and reducing dependence on foreign currency for regulatory payments.

According to a notification issued by SEBI on July 3, the registration fee for Category-I FPIs and FVCIs has been revised from USD 2,500 to Rs 2.3 lakh. The amended provisions will come into force six months after the notification, giving market participants adequate time to transition to the new system.

The regulator has amended the rules governing FPIs to implement the revised fee structure. The shift to rupee-denominated payments is expected to simplify compliance and provide greater clarity in fee payments by eliminating the impact of exchange rate fluctuations.

Apart from revising the registration fee, SEBI has also updated the common application form used by FPIs seeking registration in India. As part of the changes, applicants will now be required to provide their date of birth, in the case of individuals, or date of incorporation for entities. The additional information has been made mandatory to facilitate the allotment of Permanent Account Numbers (PAN), an essential requirement for investing in Indian securities.

Further, the regulator has directed Designated Depository Participants (DDPs), which process FPI registrations, to ensure that all applications contain the required information before they are forwarded for approval.

The latest amendments are part of SEBI's broader efforts to simplify regulatory procedures, improve operational efficiency, and strengthen the ease of doing business for overseas investors participating in India's capital markets.

With India's equity markets continuing to attract strong foreign investor interest, the revised framework is expected to make the registration process more streamlined while ensuring better coordination between regulatory and tax-related requirements.