To implement the change, the Securities and Exchange Board of India (SEBI) has amended the rules governing FPIs. The revised provisions will come into effect after six months, SEBI said in a notification dated 3 July.
Under the revised framework, SEBI has increased the registration fee for Category I FPIs from $2,500 to ₹2.3 lakh. Similarly, the registration fee for Category II FPIs has been revised from $250 to ₹23,000.
The regulator has also revised the application fee for seeking general relaxations or exemptions from the strict enforcement of regulations from $1,000 to ₹90,000, or its eligible foreign exchange equivalent.
Further, SEBI has updated the common application form used for FPI registration, making it mandatory for applicants to provide their date of birth or date of incorporation to facilitate the allotment of a Permanent Account Number (PAN).
Additionally, Designated Depository Participants (DDPs) will be required to remit the registration fees collected from FPIs to SEBI within five working days of granting registration.
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“Every designated depository participant shall remit the fees collected from the foreign portfolio investors in INR to the Board in the case of initial registration, within five working days from the date of grant of certificate of registration to the foreign portfolio investor, along with the details in the format, as may be specified from time to time,” SEBI said.
