Market regulator Sebi has changed the present US dollar-denominated registration charge for overseas portfolio buyers (FPIs) with a rupee-based charge construction.
To implement this modification, the Securities and Trade Board of India (Sebi) has amended the foundations governing FPIs. In a notification dated July 3, Sebi mentioned the revised provisions will come into impact after six months.
As per the notification, the regulator has revised the registration charge for Class I FPIs from $2,500 to ₹2,300,000. Equally, the registration charge for FPIs belonging to Class II has been revised from $250 to ₹23,000. The regulator has additionally revised the appliance charge for looking for common leisure or exemption from the strict enforcement of laws from $1,000 to ₹90,000 for eligible overseas foreign money equivalents.
The market watchdog has additionally up to date the widespread utility type used for FPI registration. Requires the widespread utility type to incorporate the applicant’s date of delivery or date of incorporation to facilitate the task of a Everlasting Account Quantity (PAN).
Additional, the designated custodial participant (DDP) should remit the registration charge collected to Sebi inside 5 working days of granting registration. “All designated depository individuals, in case of first-time registration, shall remit to the Board the charges collected from the overseas portfolio buyers in INR, together with particulars within the format specified infrequently, inside 5 working days from the date of issuance of registration certificates to the overseas portfolio buyers,” Sebi mentioned.
