Sebi amends registration fee rule for FPIs; directs payment in rupee terms
The markets watchdog has also updated the common application form used for FPI registration
Quick Revision
Prelims-testable facts
- 01The Securities and Exchange Board of India (Sebi) has amended the registration fee rule for Foreign Portfolio Investors (FPIs).
- 02According to the new rules, FPIs are required to pay their registration fees in rupee terms.
- 03Sebi has updated the common application form used for FPI registration to reflect the change in payment terms.
- 04The amendment aims to simplify the registration process for FPIs and make it more convenient for them to invest in Indian markets.
- 05FPIs are foreign investors who invest in Indian securities, such as stocks and bonds.
- 06Sebi is responsible for regulating and overseeing the activities of FPIs in India.
Trap alerts
- Most people think that Sebi's amendment allows FPIs to pay their registration fees in any currency they choose, but actually it requires them to pay in rupee terms.
- Most people think that the common application form for FPI registration has not been updated, but actually Sebi has made changes to reflect the new payment rules.
Mains Practice Question
Examine the implications of Sebi amending its registration fee rule for Foreign Portfolio Investors (FPIs), and critically analyze the impact on the Indian capital markets.
250 words
Practice this in the exam hall →Prelims Practice MCQs
Sebi has directed payment of registration fees in rupee terms for which type of investors?
- A.Domestic Portfolio Investors
- B.Foreign Portfolio Investors (FPIs)
- C.Non-Resident Indians (NRIs)
- D.Resident Individuals
Sebi has amended its registration fee rule for Foreign Portfolio Investors (FPIs), directing payment in rupee terms to simplify the process and reduce compliance costs.
What form has been updated by Sebi?
- A.FPI Registration Form
- B.Common application form for FPI registration
- C.Foreign Portfolio Investor Declaration
- D.Investor Information Form
The common application form is used for FPI registration, and its update reflects Sebi's efforts to streamline the process.
Sebi has also amended the registration fee rule to update which specific detail?
- A.The fee structure for Domestic Portfolio Investors
- B.The payment mode for Foreign Portfolio Investors (FPIs)
- C.The common application form used for FPI registration
- D.The eligibility criteria for Non-Resident Indians (NRIs)
Sebi has updated the payment mode for Foreign Portfolio Investors (FPIs) to direct payment in rupee terms, as part of its amended registration fee rule.
Consider the following statements regarding Sebi FPI Registration Fee: 1. The registration fee for Foreign Portfolio Investors (FPIs) is now payable in rupee terms. 2. The common application form used for FPI registration has been updated to include a new section on payment of fees. 3. The Securities and Exchange Board of India (Sebi) has waived the registration fee for all FPIs. How many of the above statements are correct?
- A.Only one
- B.Only two
- C.All three
- D.None
Statement 1 is correct because Sebi has amended the rule to direct payment in rupee terms. Statement 2 is also correct as the common application form has been updated. However, statement 3 is incorrect as there is no mention of waiving the registration fee for all FPIs.
Consider the following two statements: Statement-I: Sebi has amended the rule to direct payment in rupee terms. Statement-II: The common application form used for FPI registration has been updated. Which one of the following is correct in respect of the above statements?
- A.Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
- B.Both Statement-I and Statement-II are correct but Statement-II is not the correct explanation for Statement-I
- C.Statement-I is correct but Statement-II is incorrect
- D.Statement-I is incorrect but Statement-II is correct
Statement 1 is correct as it directly mentions Sebi's amendment to the rule. Statement 2 is also correct, but it does not explain why statement 1 is true.